Recent figures from the government suggest that fraud costs the British economy more than £40 billion per annum. The Attorney General’s office goes further and proposes that the true amount could be closer to £72 billion per annum. It is well recognised that for figures of this magnitude to be reached crime must exist at every level in every marketplace and in every shape and size from misappropriation of corporate assets to high risk accounting transactions. Every organisation and every individual working within those organisations ought to consider the implications of fraud, either perpetrated by its employees, customers, suppliers or organised criminals. Further there ought to be appropriate strategies in place to deal with suspicious or dishonest working practices.
Corporate crime and corporate fraud is unfortunately an everyday reality. Every single organisation suffers from fraud to a different degree. There will be those instances when organisations are crippled by fraud, so much so that it ceases to exist. Other examples include, where the fraud or the fraudulent practice, is so engrained into the work place, that it becomes part of the organisations culture and is regarded as the norm. Serious difficulties arise when this philosophy goes beyond the boundaries of the organisation and controls the relationship between an organisation, its customers and suppliers. No organisation is immune from the adverse effects of fraud whether a sole partnership or a major international corporation. This particular point is rather well made by the demise of the US corporate giant, Enron, when it was brought down by fraud at the highest level.
A corporate investigation is able to provide a risk management solution by assisting in identifying areas that are more likely to suffer from fraud and abuse. Each organisation is unique having a different set of procedures in place that allow it to lawfully transact with the outside world. At the same time a fraudulent sub-culture will exist exploiting those procedures for personal profit, gain and benefit. Different offices of the same company will have developed their own culture and procedures to deal with a perceived threat or abuse. These may not always be the most appropriate strategies, especially when a fraud is being perpetrated by those in the upper echelons of the management hierarchy who are very often the gatekeepers of organisational integrity.
A corporate investigation structured in the right way and involving the right type of professionals can help to identify the areas at risk. This in turn allows strategies to be formulated and procedures implemented to minimise the risks of fraud. Sometimes, it is not a question of limiting the financial damage through a fraud related corporate investigation, but limiting the damage to the organisations reputation and integrity, because a fraud has taken place in a particularly sensitive or venerable part of the organisation. It may be the case that tough and unpalatable decisions have to be embraced in order to achieve the desired goal. We have experience in this complex area and can advise you on a whole range of issues every step of the way. We can point out the options available to you and the direction any investigation should take in order to serve the best interests of the organisation or to meet a specified objective.
JMW have a vast experience of dealing with corporate fraud and dishonesty, from advising employers about staff who have lied on their job application forms to confronting dishonest directors with evidence of their corrupt practices. We are able to take advantage of our experience and lead other professionals in identifying areas of fraud that have gone previously undetected. In one case we were able to uncover evidence of dishonesty that lead to the company offering the “honourable way out” to its entire complement of senior management.
We are able to assist small as well as large businesses and have advised organisations worried about being unwittingly used for money laundering to representing a senior company director involved in a major Serious Fraud Office investigation and prosecution alleging corruption.
We are also able to offer a reactive corporate investigation service. If you suspect that your organisation is suffering from fraud, either by a company officer, an employee, a customer, a supplier, or some other third party. We are able to lead a team of professionals made up of forensic accountants, computer consultants and private investigators to aggressively pursue the fraud and the fraudster by deploying a range of legal weapons available to us from our armoury, the effect of which can secure incriminating evidence and stop the dissipation of the proceeds of fraud. In one such case we were instructed by a client that highly damaging evidence would be destroyed unless acted immediately. Within hours, we were able to assemble and lead a team of independent professionals, travel to the premises and successfully preserving the evidence in line with the main objective of our client.
We believe that the corporate investigatory and asset recovery service offered by JMW is unique and cannot be replicated by any other firm within the United Kingdom. Criminal corporate investigations are lead by Isaac Mirza, who has training in general crime and an expertise in white collar crime and fraud. This particular expertise not only allows him to identify areas of potential fraud but also allows the collection and identification of evidence to a criminal standard. In addition to that, Isaac also has a Masters in Business Administration (MBA), a unique qualification for a solicitor practicing in this area of law. That allows him to immediately develop a valuable insight into organisational structure, function and dynamics. When an investigation is commenced the combination of these highly specialised skills and knowledge adds a further dimension to the information collated.
If the objective of the investigation is with a view to recovering and securing the stolen assets, then Tony Winterburn, by recourse to the Civil Courts, is in a position to offer his expertise. Tony has a vast experience of dealing with these types of issues. He has acted as a supervising solicitor on many investigations and has taken a lead role in pursing the perpetrators of a fraud and aggressively litigating against them in order to recover stolen assets. It may be the case that High Court Orders or Injunctions need to be applied for in order; to secure entry as issues of access are of concern, to freeze bank accounts in order to prevent a dissipation of funds, or to preserve evidence located off-site.
Consideration needs to be given to relevant employment issues, whether that means suspending an employee pending the corporate investigation or the instigation of a disciplinary procedure when evidence of fraudulent conduct has been secured. This type of expert advice and its implications can be managed for your organisation by Paul Walker, a senior partner and specialist employment lawyer at JMW. Paul has a huge amount of experience in dealing with both employers and their employees and is able to provide the required expert advice.
The close working relationship developed between JMW’s criminal and civil investigative practitioners, their qualifications and experience makes this service highly specialised and unique. It is to our great advantage, that the team can react more quickly than the police in responding to and investigating suspected corporate crime. Once evidence is obtained, it may be the case that a file is sent to the police for consideration with a view to a criminal prosecution being commenced.
For further information on the issues raised above, please contact Isaac Mirza, Tony Winterburn or Paul Walker on 0845 402 0001 or click on on the respective Partners name to send an email.
