In this case our team was instructed to investigate the financial activities of a Defendant accused of fraudulently obtaining £100,000 in commissions from his employer, a software provider.
The Defendant had created a complex web of invoices, credit notes, cancellations and replacement invoices designed to boost monthly sales and increase the amount of sales commissions due to him from his employer.
Acting for the Defendant, Graham Garbett prepared a report based on a detailed examination of the employer’s financial affairs and interrogation of the company’s computer systems and audit trail.
Graham identified specific transactions where there was clear evidence that the Defendant had benefitted from commissions not due, but was also able to identify and quantify many transactions where there was an element of doubt as to whether the Defendant had benefitted. There were substantial gaps in the audit trail, and poorly organised record retention, to the extent that, with Graham’s assistance, the Defendant was able to successfully argue that there was a lack of evidence supporting approximately 80% of the Prosecution’s case.
The Court confirmed that the Defendant was required to repay the amounts fraudulently obtained, but only those where the evidence was clear. The employer learned a valuable lesson, and has subsequently spent considerable effort tightening up their sales recording systems and controls.