Investigation of corrupt practices exercised by the management.
Losses – UAH 20 million
A foreign investor contacted Kreston GCG to investigate corrupt practices exercised by the management. The evidence of fraudulent activities exercised by directors and other employees of the holding was collected to be used further in legal prosecution. Moreover, we assessed the size of losses incurred as a result of such actions.
1). We identified a number of fraudulent activities (and arranged our findings as documented evidence) pertaining to the siphoning of funds from the holding to the benefit of third parties by means of:
— fictitious procurement of services;
— overpriced purchases and sales of property complexes carried out multiple times;
— purchase of land from individuals who held no proper ownership rights;
— provision of interest-free financial assistance to management and cronies;
— purchase and disposal of profit participation rights;
— export of various stocks from the enterprises of the Holding and their write-off “for business needs” or preparation of fictitious harvest failure reports;
— renting of barren land.
2). Actions were planned and undertaken to recover the Holding’s assets alienated by the suspects.
- CLIENT Ukrainian agroindustrial holding with foreign investments
- SERVICE Forensic – Financial Investigations
- INDUSTRY Agriculture
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