Employee Fraud

The one with one employee with the audacity to commit two completely separate frauds…

Service Type

Employee Fraud

Client Type

not for profit

Sector

housing associations

Case Value

£100k - £1m

Advice was provided to a large housing association in relation to recovering losses caused by an employee in their property and maintenance division.  The employee had managed to build a relationship with one particular contractor so to allow circumnavigation of procurement guidelines.  The employee had divided the value of maintenance and development contracts to an amount that permitted them to award the work to a chosen contractor rather than use a tendering process.  

In addition to the collusion, it was discovered that this contractor had been overcharging for work not undertaken and had further built an extension for the housing association’s employee at their personal address.  No paper trail of evidence existed to demonstrate that this work was paid for by the employee, leading to the conclusion it was a benefit from the contractor in exchange for the employee awarding higher levels of work.   

This employee had further been abusing a corporate credit account of the housing association with high street retail suppliers utilising a voucher scheme operated by the housing association.  The employee had identified a loop hole so to place orders and verify those orders enabling her to order multiple electronic goods.  The employee arranged for those goods to be collected by a member of their family and then they were sold for the employee’s personal profit.

 The investigation and litigation resulted in the employee being dismissed, advice being provided relating to the regulator of the housing association and advice concerning ongoing improvement of governance and counter fraud policies and procedures.

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