Berntson Porter & Company is pleased to have assisted another company with a complex fraud investigation. The owner of a $30 million distribution company was reviewing his company's profit and loss statements when he discovered unusually high expenses. The owner contacted one of his cost accountants to inquire about the increased expenses. The cost accountant confirmed the expenses were unusually high, but had been approved by the general manager. Based on those comments, the owner decided it was in his best interest to engage us to perform an "undercover" fraud investigation.
 
Result #2: Using special fraud examination techniques, we discovered that the fraudulent behavior started two years prior, right after the owner told the general manager she would not become the new owner as originally promised. Our investigation uncovered misappropriated assets of over $266,000 which included: 126 unauthorized checks, three unauthorized IRA payments, 206 unauthorized petty cash withdrawals, four unauthorized credit card purchases and two unauthorized computer purchases. We also identified ten additional payroll payments where the general manager had colluded with the payroll manager. At the conclusion of our investigation, we provided both the owner and police with a detailed fraud examination report. Our post-investigation service included recommendations to improve the company's internal controls. The owner and authorities are in the process of recovering the misappropriated assets.