China Case Study: Retail - Collusion with Suppliers

This corporate investigation, conducted by Kreller, exposed an officer of the General Counsel for a larger retailer for his involvement in a corporate collusion scheme.

The Anonymous Tip

Kreller had received an anonymous tip that an officer of one of their divisions colluded with their suppliers and was alleged to have created his own trading entity in order to source products for his employer. 

The Investigation

During Kreller’s meticulous due diligence, we identified several shared businesses between the officer and an unrelated party in Hong Kong, one of whom was selling products to the retailer. The unrelated person did not share a common name with the officer; however, additional research was able to locate a dated bankruptcy proceeding that named her as the officer’s spouse. 

Additional Fraudulent Activity

During the course of this corporate investigation, Kreller was able to prove that the officer had also lied on his resume regarding his most recent position before being hired by the retailer, committing fraud.

Conclusion

This case shows that internal investigations are crucial in preventing fraud and maintaining ethical business practices. Kreller’s investigation exposed collusion and fraud, which involved thorough due diligence, protecting the retailer’s financial interests and reputation.