Customer. National company, market leader in the hygiene and cleaning industry.

Problem. An internal audit identified a series of alleged exports to South American countries in which there were indications that the goods were not actually exported, but were illegally resold in the parallel market in Brazil without paying due taxes.

Indirect pseudo-exports

Solution. The investigation found that over a period of 02 years, US$ 3 million of products were sold to import and export trading companies in a city on the border between Brazil and Bolivia in order for these domestic buyers to export the product abroad. However, the products were not exported or passed through “buying” companies that were in precarious situations and lacking legality. The payment took place in cash and the merchandise was removed without a trace of its actual destination. Wolfe Associates identified a group of employees from various departments involved in the scheme. These employees dominated the entire registration and sale process for these “buyers”. The main managers worked together at their previous employer. Evidence of maladministration and negligence on the part of other employees and executives not directly involved in the fraudulent operations was found. The Wolfe Associates report was the basis for a complaint to the Public Prosecutor's Office.

The names of those involved were not revealed for reasons of secrecy. Is your company losing money with transactions without a commercial basis that benefit third parties and harm the company? Wolfe Associates can investigate misconduct by 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.

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