CORPORATE iNTELLIGENCE & FRAUD
What is Corporate Fraud?
Corporate fraud consists of illegal wrongdoings by the corporate directly or senior level executives within the company. As corporate fraud is a broad term, there are many types of fraud that take place. Various examples may may include bribery at the corporate level, asset misappropriation, tax evasion, and account reporting. One of the most famous fraud case in history involved a billion dollar U.S. based energy, commodities and services company called Enron.
When would You conduct a fraud investigation?
Private persons or companies in many cases would require a CFI for various reasons:
- Insurance Fraud, Health related
- Mortgage, Bribery, Corruption
- Bank Fraud, or Bankruptcy Fraud
- Ponzi schemes
- Tax Evasion, Tax Fraud
3 cases of corporate fraud that made history
- Charles Ponzi
The history of white-collar fraud began with Charles Ponzi’s infamous scheming in 1919 but can probably be traced back to the beginning of corporations themselves. Although the scheme began in 1919, Charles Ponzi was arrested in 1920 on 86 counts of mail fraud. To this day, these schemes are still at large, and investing requires much due diligence on behalf of the investor or consumer.
Enron used to be the 7th largest corporation in the United States, valued at over $70B USD. In 1997, they started losing money and in an effort to keep the stock price afloat, they began using “accounting tricks.” This kept them alive for 4 more years, and soon the media and investors began wondering if the stock price was overvalued. Investors began to cash out and the stock price of Enron soon fell below $1. After filing bankruptcy in 2001, approximately 20,000 employees had been let go and $2B in retirement, gone. Many executives had been convicted, and served prison sentences for their wrong doings.
Founded in 1999 Wirecard is a German payment processor and financial service provider. After their near collapse in 2001, Markus Braun joins as CEO in 2002. Their focus soon shifted to providing payment systems for porn and gambling websites. Additionally in 2002, Wirecard joins the stock market to avoid backlash on their initial offering. Over the next 6 years, Wirecard stock prices began to soar. In 2008a shareholder then scrutinizes Wirecard and reports their irregularities in balance sheet reporting. Nothing more was made mention. After the global financial crisis, Wirecard raises 500M Euro’s in an attempt to push the stock price back up, fueling rapid growth. Over the next 4 years, stock prices were on the rise. In 2015, the FT states that there is a hole in the balance sheet and shortsellers are also reporting irregularities.In 2018, $24B enters it’s stocks and Wirecard is found to Europes largest Fintech. In 2019 BaFin bans short selling. Softbank then injects $900M later that year. In April of 2020, KPMG cannot confirm genuine profitability and German police search Wirecards office, finding $1.9B in missing capital. Soon the CEO is arrested and Wirecard files insolvency.
Complete our Free Consultation Form:
To begin, please fill out our consultation request form online to speak with one of our private investigators. Our in house agents will then tailor the investigation with action yielding objectives to reach your results.
Connect With One of Our Private Investigators:
A private investigator may field the inquiry prior to reaching out in order to understand the situation and prepare. Questions asked by the agent may be one or all of the following:
- Does this investigation have reasonable purpose?
- Where is the Subject or Matter located?
- Can you provide specific information in which you are seeking to obtain?
- Do you have any knowledge or intel that you would like our agents to investigate further?
- What information on the Subject or matter have you found already?
- Would you like any close associates or persons investigated as well?
Once a case action plan has been identified, your assigned private detective will begin the investigation. An example of the investigative process may look like such:
- Immediate Action. Your case will be immediately assigned and work will begin within the first 12-24 hours.
- Corroborating facts. Is the information provided to the investigator sound?
- Execution of Case Action Plan. We assign the most fit investigator to achieve the most valuable results.
- Case Action Updates. Your investigator will provide you with status updates and obtained information regularly.
- Facts. After obtaining the information sought after, we comb through the case file and ensure no steps or information had been missed.
- Final Report. Compiling your case report may be the most crucial part. We ensure professionalism and accuracy.
Our team of highly trained professional investigators will obtain information on the specific person or object. Actions in accordance with legal guidelines, time tailored for your case, and proper reporting are all necessary for a private investigator to fulfill a proper investigation. Corporate Fraud may require additional time outside the 4 hour minimum that PRIVIN has in place to conduct a professional investigation.
Completion of Your Case:
The investigator assigned to your Corporate Fraud case will provide you with a written report for you to review. Additionally, the report is reviewed by the client and investigator for accuracy. Any questions the client may have will be answered accordingly.
Being the professionals that we are, in the event that the client requests the assigned agent to appear in court, we are able to coordinate the evolution.
Confidentiality is paramount and therefore all communication between a client, and the assigned investigators will be kept Confidential.