Assessing the pieces
Our client—the Canadian arm of a non-profit—had a former employee divert more than $1M CAD to several different personal bank accounts. The scheme combined hundreds of donations purposely hidden and mixed in with thousands of legitimate transactions—making it difficult to differentiate in the organization’s donation software. The fraud also involved hundreds of diverted donations that were never recorded in the records. Our client needed independent expertise to understand the fraud’s full scope and confirmation that the former employee acted alone.
Worked with their legal counsel so that our client understands the fraud’s totality.
Conducted a multifaceted forensic accounting investigation which included a digital forensic investigation of the former employee.
Quantified the diverted funds by applying a variety of forensic accounting techniques to the donation records.
The digital forensic investigation was able to identify the fraudulent tax receipts, and a credit card merchant account used to divert hundreds of thousands of dollars to a personal account and altered donation receipts.
We offered our client an understanding of the fraud’s totality by working closely with their legal counsel and conducting a multifaceted forensic accounting investigation. This included a digital forensic investigation of the former employee’s computer, online cloud storage and employee emails/communications. We also quantified the diverted funds by applying a variety of forensic accounting techniques to the donation records and evidence from the former employee’s personal bank records. The digital forensic investigation identified additional details: fraudulent tax receipts issued by the former employee to themselves and family members, a credit card merchant account used to divert hundreds of thousands of dollars to a personal account and altered donation receipts.
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