Criminal Justice - the Fraud Investigation

Abstract

This Paper provides a narrative report that takes the presented facts to demonstrate to you in chronological order the process in which the fraud investigator was able to discover these findings and the misappropriation of the asset fraudulent disbursement scheme going on as well. The investigation report will set forth the facts of the matter in the investigation, The author concludes this report with some recommendations and decides if further action is warranted against the individuals that participated in such activities.

The fraud investigation objective:

Is to determine the possibility of misappropriation of assets and disbursements of Lakes, Inc. The investigation was predicated upon an anonymous caller alleging improprieties of purchases and invoices by Mr. Bob Smith, the associate director of purchasing at Lakes Inc.

The Investigation Report:

1). I was asked to conduct an investigation at the plant of Lakes, Inc. 2). based on an anonymous tip that the company received on June 12, 2007 that an employee was submitting false expense claims. 3). The tip stated that an invoice for the purchase of a computer server was false and that the actual purchase was for a high definition (HD) flat screen television. Mr. Robert Smith the associate director of purchasing and Ms. Mary Bad the administrative assistant of Mr. Robert Smith , were sent home with pay while the investigation was taking place. (to avoid any defamation of character lawsuits that could arise if the allegations were false) . 4). the investigation took place from August to November 2009. 5).the vendor, Sterns, was contacted and an 6). On-site visit was 7). An approved vendor since May 12, 2005 and confirmed that the invoice number on the file copy matched on the invoice they had for the sale of a HD television. 8). The manager, Mr. Ted Jones, advised that in the past 6 months the same individual, Mr. Bob Smith, had made 2 other purchases that he considered odd

because he asked that the purchase be held for pick up by either him or his administrative assistant, Ms. Mary Bad. 9). the purchase was made with a corporate purchased credit card issued to Mr. Bob Smith,

10). the investigator returned to Lakes inc., to compare the invoices 11). in their accounting department, where they maintain a physical