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So we're going to talk about embezzlement investigation a lot of times when we talk to a client that has had an
embezzlement event we want to take a look at what are the threat levels for
a potential company to be embezzled from or stolen from first of all
companies have a flow of funds which is double your annual revenues if you're a
10 million dollar company you actually have twenty million dollars revenue flow at to risk you have the income side
you also have your expense side any one of those sides can actually have embezzlement happen
there's a third method which is debt which means that if a client or employee or an executive uses debt that may even open up a third
avenue of embezzlement any movement of money creates an exposure for diverting that cash asset
it's often hidden in the accounting to prevent easy discovery most
times when an embezzlement or fraud or theft occurs in the company
it's somebody who has knowledge of the operations of the company it may be an executive it may be an employee sometimes it's an outsider like a vendor or client that
knows the inner workings of that company the metrics will always have an indication of
the fact that a fraud exist there'll be a percentages of a cost the sale will be higher
maybe a a margin in a certain department will be off a little bit
the investigative analysis will always discover where the fraud is
it's important to reveal all the parties that are involved not just catch the
product stop it you wanna find out all the parties or part of it and the complete method that way
you can prevent that method from re growing somewhere else
or maybe one of the parties or part of it that don't get caught
can start up this fraud again in another time another place maybe another department
the motivation behind the fraud is crucial to determine as a management tool in most cases a
potential fraudster a potential investor needs three elements to start the fraud
they need the financial need some family event a medical emergency something where they need the money
they need to be aware that the opportunity exists for them to steal
but more importantly they need the motivation to say this is okay to do in
this company a lot of times that happens from
management issues may be passed over for promotion or feeling like
they're entitled to some type of raise any investigation for an
embezzlement should be covert as long as possible prior to confronting the people
stealing the money that way
you can get a sense for the depth of the fraud
you can get a sense for who all is involved and you're not tipping your hand to people who are
you
don't think are involved who may actually be involved in the meantime you
want to secure your remaining assets
make sure that your bank accounts are secure your inventory is secure try to
identify where the diverted assets are
remember that law enforcement prosecutors have a certain appetite for
this
if you bring a potential fraud to
the police department in your area they're probably not gonna jump on it because
the
thresholds for prosecution are very very high sometimes they are several hundred
thousand dollars before their
interested unless you bring it to them pre-investigated
on a silver platter all the evidence everything documented by
a licensed third-party investigative agency not hearsay with inside your
company a private investigation is between you an investigator
it's protected by law so you can disclose it when
where and how you want to outside of your company if you want more information
about investigating potential fraud embezzlement in your company
you can reach us at our website at AFXsearch.com