A European technology manufacturer suspected its Russian sales office of contract and revenue diversion. A whistleblower was claiming that certain employees were manufacturing and selling counterfeit equipment. These products were produced to a poor quality in unlicenced factories but had been labelled with our client’s branding. Our client wanted quickly to determine the credibility of the whistleblower’s claims without alerting the sales office that an investigation has been started.
Greyhawk interviewed the whistleblower in a secure location. Based on the information provided we began an in-depth investigation into the suspected employees. Confidential enquiries and surveillance in Russia showed that the three main suspects were leading lifestyles which would be unaffordable on their salaries. We uncovered the recent purchase of a holiday villa in Europe by one of the suspects. We identified Russian and Cypriot companies connected to the defendants and their families. Further investigation showed how these companies were likely to have been used by the defendants to conceal and distribute the proceeds of the fraud.
We demonstrated that the whistleblower’s claims were broadly accurate. We located the rival manufacturing operation and found evidence that the suspect employees had colluded with one of our client’s largest customers in the region. We identified several Russian officials who were also involved in the fraud. Given the sensitivity of the jurisdiction, our client used our findings to reach a negotiated settlement with its employees.