Background

FRP was engaged by an AIM listed company to investigate fraudulent activities of a senior sales employee and to review the systems and controls to determine how the fraud occurred. The client specialised in offering data migration solutions globally. The company’s shares were suspended whilst the investigation was conducted.

Action

Our Forensic Services team undertook an independent fact gathering investigation to establish if the sales were in fact fraudulent and who was involved in the fraud. We conducted interviews with various individuals in senior positions at the company and those that had regular contact with the senior sales employee to determine the fact base. FRP’s forensic technology team assisted with the investigation by imaging laptops and mobile devices and hosting email data on our e-Discovery platform, Relativity. Through this platform, we performed targeted searches to assist in our understanding of the events leading up to the creation of fraudulent sales, their recognition by the company and announcements made to the market.

We also obtained documentary evidence to understand the policies and procedures in place at the organisation and performed a review of the client’s systems and controls.

Following our investigation, we prepared a written report outlining our findings into the fraudulent sales of the senior sales employee and the impact of removing those sales on the company’s financial accounts. Our report also outlined our review of the systems and controls which the company had in place to determine how the fraud occurred.

Outcome

Our client was able to use our investigation report to support the findings from its internal investigation and confirm that the fraudulent sales were solely generated by one senior sales employee. Our report was shared with the client’s auditors to assist with their year-end audit and sign off on the company’s financial accounts. The company’s shares suspension was subsequently lifted.