CASE STUDY: BRIBE IN A LARGE RETAIL CHAIN
How CTS Universe exposed a case of illegal commissions receipt by senior employees at a large US retail chain
Suspicion arose at a leading US retail chain, that senior buyers employed by the company, whose part of their job description was to purchase merchandise from outside the US, were accepting bribes from several vendors. The suspicions were very general in nature, and were based on unsubstantiated rumors.
Our professional solutions
The customer engaged our services to tackle the problem, andCTS took action in numerous areas. Our activities were divided into two stages.
The initial stage focused on intelligence activities. At first we established a widespread intelligence network. We managed to collect thousands of relevant details, using sophisticated means. Next the information gathered was analyzed and processed. Initial identification of the main parties involved was then possible, and so was gaining of basic knowledge of the methods used for accepting the bribes.
In the second stage, CTS commenced the work involving investigation and exposure. Within this framework, the following accomplishments were attained:
CTS discovered that the average amount of the bribes equaled 5% of the amount of the companys purchase from that vendor. This significantly high percentage,had a substantial impact on the companys gross profit margins.
CTS identified the structure of the corrupt buyers ring among senior executives in the Purchasing Department. We also identified the methods by which the bribes were paid: cash payments and deposits in bank accounts outside the US, in the name of offshore companies.
Following an intensive investigation effort, which incorporated a variety of investigative methods, such as surveillance of suspects and instigation of business dealings with them under pretext – dozens of buyers who had been accepting bribes were apprehended.
Most of them admitted wrongdoing. Based on the evidence provided by CTS, their employment was immediately terminated. Those who at first had claimed innocent, eventually admitted too, after failing a polygraph test.
In addition, the vendors who had been involved in the bribery schemes were identified, and their contracts with the company were terminated.
How CTS Universe discovered and exposed a case of electronic calling card forgery at a large telecommunication company in Asia
A large telecommunication company in an Asian country suffered from a series of forgeries of electronic calling cards.
Due to the growing sophistication of the electronic characteristic of calling cards, it has become necessary for forgers to collaborate with parties within the telecommunications companies themselves. Within the framework of this collaboration, the ‘insiders’ pass confidential information on to the forgers, and sometimes alter the records in the company’s books.
Our professional solutions
CTS identified the modus operandi of the calling card forgers, including technological and commercial aspects. We then moved to an undercover activity among the forgers. This activity was aimed at the planting of disinformation among thecompany’s employees, that resulted in revealing the connections between some employees who collaborated with the forgers and the forgers. Next, several senior employees of the telecom company, who had had special connections with the forgers were apprehended.
And finally, in a complex surveillance operation, CTS managed to locate the site where the forged calling cards were manufactured.
CTS operation caused a dramatic reduction in the extent of calling cards forgery and afforded the company considerable financial savings.
CASE STUDY: MULTINATIONAL BUSINESS INTELLIGENCE
How CTS Universe conducted a worldwide business intelligence gathering and analysis process to support an arbitration event
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