Industry – Jewelry
Territory – East Europe
Client – Manufacturer and distributor of jewelry.
Case – The client received information from a whistleblower about alleged illegal activities related to its operations in Eastern Europe.
Actions –
- Our fraud examination experts revealed that the CEO and CFO of its operation in East Europe committed a sophisticated fraud by entering false records into the accounting system in a way that enabled the embezzlement of customers’ monies.
- The client decided to dismiss immediately the executives, despite the special status gained by the CEO who maintained personal connections with main customers and had a special expertise within the jewelry market in Eastern Europe.
- We provided the client with interim CEO and CFO, for a period of 6 months and secured continuity of the business operations.
- We implemented a communication strategy that was aimed internally at the company’s staff and externally at the company’s clients. it ensured the stability of the company going forward.
- We acted to minimize damages and losses that were generated due to the fraud.
- We assisted the client in the recruitment process of new CEO and CFO to whom we assisted during transition period.
Outcome – We enabled quick recovery from adverse fraud affects and maintained stability and continuity of operations.