Customer. Clean, domestic company, manufacturer of cleaning products.

Problem. The board of directors of Limpar was informed of the existence of a police investigation alleging a fraud and tax evasion scheme committed during the previous administration in which certain suppliers of raw materials for the production of plastic bottles were not legitimate suppliers, but were iron heads (“oranges”) for an organized gang composed of directors of the group itself in collusion with Grupo Angara, a major packaging supplier.

Corporate corruption scheme to favor executives.

Solution. The investigation found that the company Limpar was the victim of fraud by collusion between an organized group made up of executives from Limpar and Grupo Angara, and the suspected suppliers were in fact façade companies. Of the R$21 million worth of products sold by suppliers suspected to Limpar, half were delivered to Grupo Angara without undergoing quality control. A centralization of the administration of fraud resources was ascertained. A very weak control environment was identified, which facilitated the registration of suspicious suppliers and the operationalization of the fraud. Wolfe Associates identified a group of Limpar executives who acted in collusion with Grupo Angara. Evidence of maladministration on the part of previous management was found. The Wolfe Associates report was the basis of Criminal news.

The names of those involved were changed for reasons of secrecy. Is your company the victim of mismanagement by incompetent executives or acting in bad faith? Are you losing money with transactions without a commercial basis that benefit third parties and employees and harm the company? Wolfe Associates can investigate mismanagement, incompetence, negligence, and misconduct on the part of employees and third parties. We can quantify the losses caused by incompetence and wrongful conduct, identify vulnerabilities in controls and processes, and recommend countermeasures for corrections.

‍