Investigation of management’s abuse. Losses – UAH 20 million
A foreign investor came to Kreston GCG for help in investigating management abuse. For further prosecution, evidence of fraudulent activities carried out by directors and other employees of the holding were collected, as well as an assessment of incurred losses was conducted.
What was achieved:
1). We identified a number of fraudulent operations (for which a package of documentary evidence was collected) in particular on withdrawal of funds of the holding for benefit of third parties were by means of:
Fictitious procurement of services;
Purchase and sale of property complexes several times with an increase in price;
Purchase of land from individuals wihout proper ownership rights;
Provision of interest-free financial assistance to management and affiliated persons;
Purchase and disposal of corporate rights;
Export of various stocks from the holding enterprises with their write-off as “for business needs” or preparation of fictitious reports on the loss of crops;
Renting of land that is unfit for use.
2). Certain actions were planned for the return of the holding’s assets, which were alienated by suspected persons.
- CLIENT A Ukrainian agroindustrial holding with foreign investments.
- SERVICE Forensic and financial investigations
- INDUSTRY Agriculture
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