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Financial losses due to recruitment due diligence

Appointment Type: Other

Service Area: Fraud

Industry: Manufacturing & Construction

Litigation Type: Other

A manufacturing client had identified potential financial losses as a result of weak recruitment due diligence, the absence of an internal financial controls framework and lack of management oversight.

A forensic investigation identified the Finance Manager did not have the requisite qualifications and experience whilst identifying further concerns relating to the authenticity of his stated qualifications. It was identified that references from former employers were not obtained.

Our investigation identified that  the Finance Manager abused the lack of internal controls in order to

• Award himself an increase in pay on two occasions:
• Increase of his employer pension contributions from 4% to 20%;
• Incur substantial personal expenditure on his company credit card and fuel card;
• Amend his sickness absence records in order to qualify for an increased payment from the company profit scheme; and
• Appoint himself without Board approval as a company director for 12 companies within the group.

The Finance Manager had already resigned but was seeking a settlement. Our evidence was sufficient for him to leave with no further payment.