Customer. National merchandise distribution company.
Problem. The company received a complaint of a merchandise diversion scheme internally.

Internal product deviation

Investigation. The investigation found that first-line goods were considered second-line goods inside the warehouse and leaving the company as scrap. Collusion was identified between warehouse employees responsible for the separation of merchandise and expedition employees. A truck driver delivered the diverted goods along with scrap. Officials who were not involved received bribes to “turn a blind eye”. Wolfe Associates found vulnerabilities in the management system that allowed internal diversion in collusion between warehouse and shipping employees. Recommendations were made to correct process failures.

The names of those involved were not revealed for reasons of secrecy. Is your company losing money and being a victim of internal embezzlement? Wolfe Associates can investigate misconduct by employees and third parties. We can quantify the losses caused by incompetence and unlawful conduct, identify vulnerabilities in controls and processes, and recommend countermeasures for corrections.

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