Inventory Theft by Employees
Situation:
Fortune 500 consumer goods client reported suspicion
of company employees redirecting inventory potentially
worth several hundred thousand dollars per year
for resale and personal gain.
Approach:
Client initially requested that undercover operatives
be placed in their facilities to detect theft
of product and time. Corporate officers were advised
that this proposed solution would not be an effective
use of resources due to low probability of gaining
meaningful intelligence or hard evidence. Task
Force instead recommended that a team of three
former federal agents be deployed to interview
and interrogate employees to gather evidence that
could be used both in the civil and criminal arena.
Resolution:
After three days of interviews with eleven employees,
Task Force uncovered an elaborate, ongoing scheme
to steal product and sell on the open market.
Within ten days, forty-six employees in three
different States were identified as being involved.
All employees involved were terminated. Coordinating
with local law enforcement, seventeen individuals
were arrested and received felony convictions,
with thirteen receiving prison sentences.
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Situation:
Recreational equipment manufacturer retained Task
Force to help increase profits and identify lost
revenue due to suspected misappropriation of inventory
by employees.
Approach:
Two consultants were deployed to interview key
employees and follow up with interrogation of
employees suspected of inventory theft. Within
eight hours of commencing interviews, two employees
admitted their involvement in a conspiracy to
redirect product to sell at various venues across
the U.S.
Resolution:
Task Force quickly uncovered the entire network
of employees involved in this scheme, with eleven
additional employees admitting guilt in an effort
to avoid possible criminal prosecution. In consultation
with client executives, it was determined that
the best course of action was to let time pass
before proceeding in order to avoid a significant
disruption to ongoing business operations from
employee defection before replacements could be
hired. The client was also wary of negative publicity
surrounding the situation, so Task Force proceeded
under confidentiality and supported client’s
request to avoid prosecution. During that time,
a dozen employees resigned or never returned to
work. The suspected employees were replaced, and
profits for the following quarter doubled.
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