HOW TO INVESTIGATE THEFT IN THE WORKPLACE, PART II

In this issue we will continue to examine theft in the workplace and the effects that it can have on businesses irrespective of the size of an organisation, the type of organisation and the location of an organisation.

We have found that there are no barriers that automatically affect a person's moral consciousness before committing an offence of theft.

We have investigated thefts across charitable organisations, Government association and within family businesses and in the current financial crisis we have seen thefts and frauds increase and the regulatory and observing bodies expect them to continue to rise. 

As we mentioned last month those thefts can be of tangible and intangible items and we see those issues of intangible thefts all too often. Within this category we include:

  • Theft of time
  • Theft of Intellectual property
  • Theft of data and identity

In considering our approach to dealing with these issues we will have established as covered in last month's article that everything that we do is lawful. Following that Expert Investigations will discuss concerns with the client that fall in to the terms of :

  • Impact Assessment
  • JPLAN

We need to consider what impact the investigation will have on the organisation and this is usually found to be very positive and any concerns which may have arisen as a result of any such investigation.

We then need to consider JPLAN…in the investigation

  • Justified
  • Proportionate
  • Legal (already covered)
  • Absolutely
  • Necessary

The impact assessment and JPLAN will show complete impartiality by the client and will show that consideration has gone into choosing the investigation route as opposed to some ‘fishing expedition' on some individual for ulterior motives.

Once a decision is made via the investigation route we need to consider the investigative channels available.
Does our investigation require?

  • Surveillance or Observations
  • Undercover work
  • Background and database enquiries
  • Computer Data Forensics
  • Other forensics
  • Covert Cameras

Each enquiry will be unique in its own peculiarities but many take a very tried and tested similar route.
This month we examine the Theft of Time
In subsequent issues we will cover Intellectual property and date /  identification theft.

Our experience of theft of time takes 2 basic formats:

  • Theft of time to run your own business or organisation
  • Theft of time via false absenteeism

Often you will find that someone will be falsely absent to run or start their own business and again this may overlap into theft of IP and breach of contract as they use your IP  if they are setting up in a like business. It is also very important to remember that these offences are committed by white collar workers as well and we often find the offences being committed at board level

A case which is a great example of this is where the subject (the individual who was committing the theft of time) was found to be under performing within his field sales role.

The subject was a field sales rep within a company who placed high value flower arrangements, potting plants and large trees and interior designs within the commercial workplace and corporate events.

  • He earned a very good basic salary and with an OTE well in excess of £50 000. He had the company benefits of a nice vehicle, mobile telephone, laptop, company brochures and a generous expenses account.
  • Whilst he was purportedly always out on the road, making enquiries and using his fuel, expenses and mobile it was noticed over a period of months that his work was decreasing.
  • Tentative enquiries were made and the subject was monitored.
  • This went on for a long period and what transpired eventually to be too long.
  • The individual then went sick from work with a physical injury preventing him from driving and walking.
  • Several months passed and an investigation was decided and Expert Investigations undertook the enquiry.

An analysis was undertaken of the pervious few months and expenses and enquiry rota and a pretext was made to retrieve the company laptop from the subject's sickbed under the pretext of a virus.

At this time within a few hours we were able to copy the hard drive from the laptop and also retrieve deleted data showing documents raised and received, emails in and out, discs and USBs inserted and valuable data was recovered. His laptop was returned to him and he was none the wiser of what had occurred.

It was established that our subject was running his own business within the same industry sector as our client….his employer.

A short surveillance operation was conducted on the subject and was seen daily leaving his home, but not in his company car. He drove to a small unit which bore a company name very similar to our clients and the new company did exactly the same as our client.

Background enquiries showed that it had been established in his wife's name and the name of another unknown persons and the surveillance showed the subject running this business. He met clients' at the location; he went out to premises in order to quote for work and was also present at delivery.

Surveillance officers were able to pose as potential clients and were handed brochures and literature including references which were actually those of our clients. (This IP issue will be dealt with next month and breach of contract in later months).

All of the evidence was covertly video and audio recorded including utilising body worn covert audio cameras whilst posing as customers. Evidence of brochures were retained.
This subject who had stated he was laid on his sick bed whilst receiving sick pay was running another company which he had a propriety interest in. His employer's wages were supporting him during the setting up and inception of his business.

He had been gradually been doing more of his work within company time and then when he could not run both roles he went off sick to run his concern.

The issue of the theft here mounts up to more than the theft of time and money he received from his employer during his poor working time and then sickness. There is a wider issue here as to how much money his employer has lost permanently?

  • This sales person knows the suppliers, customers, pricing structure and profit margin. He has not had to build his business from scratch as he has via his laptop and company knowledge all the information he needs to undercut the costs of his employer. The figures will have been very very significant.
  • If we bring this up to date with the current financial position can you consider given the current financial position how many employers can be affording to
    • pay sick pay
    • support an unproductive team member who is responsible for sales - the very sales that are required to keep companies in profit
    • how many companies can afford to lose trade to a competitor - especially a new one who is positioned ready to be able to undercut you
  • The costs become more significant when you think of the expenses, fuel and loss of productivity when someone in that position is ‘sick'

Consider your cost if someone is long term falsely absent and they are not running a business but just choosing the time to do with what they like

  • sick pay
  • loss of productivity
  • moral of employees
  • paying overtime or agency costs to cover them?

Now may be a good time to think back to the Impact Assessment. What impact will an investigation have on your company? Also recall the JPLAN

This is a lot more common than you may think.

Justifiable…..Proportionate….Legal…Absolutely...Necessary

Written by David Kearns, Expert Investigations