Client.Major international bank acquired large Brazilian retail bank.

Problem.Three years after acquisition, a labour claims contingency of over US$300million was identified. The amount of the losses were strategicallysignificant, compromising senior country management. The Country Manager (wholater became the Group CEO) panicked.

Investigation.Investigation revealed fraud, corruption and extortion scam involving bank’sinternal and external lawyers for highballing claim values and dividing theillicit proceeds among the lawyers and the claimant. Leaders of the scam organizedorgies with prostitutes and drugs. The Investigation also uncovered a secondscam involving external lawyers who received confidential information frombank’s HR regarding dismissals, and then brought avalanche of identicalfraudulent labour claims supported by stolen documents and primed tutoredwitnesses. Gross negligence was identified on the part of the headhuntingdivision of Big 4 auditors, responsible for recruiting the corrupt employees.

Compromised employees and internalvulnerabilities were identified. A litigation strategy was developed to counterthe fraudulent suits.

The names of those involved havebeen withheld for reasons of confidentiality.

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Tags: Bank corruption scam. Graft.Bribery and kickbacks. Extorsion. Fraudulent labour claims. Crisis management.

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