Financial Investigation

The external audit firm alerted the board of directors to accounting irregularities related to the CEO’s expense reports. The board of directors launched an internal investigation to review the validity and magnitude of the embezzlement. Independent counsel for the board of directors engaged an HMP executive (at a former firm)  to conduct an investigation of the alleged wrongdoing.

  • The CEO had gone AWOL by the time we were engaged and could not be interviewed
  • Nearly all of the records were paper copies and needed to be converted to digital files prior to analysis
  • The authenticity of expense report receipt documentation was questionable
  • Although initially cooperative, we uncovered during the investigation that the CFO appeared to also be embezzling company funds
  • Conducted interviews with key accounting personnel and internal audit
  • Worked with private investigators to help locate the CFO and his potential assets
  • Reviewed the Company’s policies and procedures
  • Developed a protocol for identifying fictitious receipt documentation
  • Examined submitted expense reports compared to receipt documentation for instances of potentially fictitious receipts or missing receipts
  • Reported findings to board of directors
  • The investigation results were submitted to the board of director’s counsel for further investigation and proper disposition
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