Forensic Investigation Into $29 Million Fraudulent Procurement Activity
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June 26, 2025
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A global manufacturing company headquartered in the United States identified a significant discrepancy between the specialized shipping containers it had recently purchased, valued at more than $29 million, and those physically located in its warehouse. Despite an initial records review, the company was unable to resolve the issue and retained FTI Consulting to conduct a forensic investigation and determine the root cause of the discrepancy.
Our Impact
- FTI Consulting uncovered evidence of a procurement fraud scheme involving several employees and multiple vendors over an eight-year period.
- The evidence collected by our professionals was ultimately referred to law enforcement, resulting in the charging of several current and former employees with defrauding the company of more than $29 million.
- The investigation enabled the company to take corrective action, mitigate further financial loss and ultimately strengthen procurement controls to prevent future misconduct.
Our Role
- FTI Consulting conducted a thorough forensic investigation into the company’s employees, identifying close personal or family ties to third-party vendors.
- The team performed a detailed forensic analysis of email communications between employees and vendors to uncover instances of fraud.
- Our forensic accountants harmonized and compared data from multiple company systems (purchasing, shipping, receiving and invoicing) to identify discrepancies and strengthen the investigation.
- FTI Consulting worked closely with law enforcement and the company’s legal team, ensuring the findings were properly documented and actionable.
Published
June 26, 2025
Key Contacts
Senior Managing Director
Senior Director
Senior Director