Specialty Waste Fraud Investigation
A publicly traded solid waste company realized that they had been defrauded by one of their employees. The employee had been brought in to head up a specialized division of the company specializing in agricultural waste from farming operations. Unbeknownst to the company, this individual had several companies set up in his name which he mischaracterized as important business partners in the company’s pursuit of agricultural waste customers. The entities received sales commissions and broker fees and also were used to divert revenues away from the company in favor of the employee. In some instances, the expenses associated with the agricultural waste disposal were borne by the company and the bulk of the proceeds of the business were diverted to one or more of the employee’s businesses. The investigation revealed that the employee was in fact the owner of the businesses, secured a confession from him and his ongoing cooperation including the voluntary production of his personal and business banking records which enabled the quantification of the loss. This calculation was then used to enter into a settlement agreement between the parties in which the former employee agreed to pay back the money he had improperly diverted away from the company.