Lexentra - Tri Risk

CHALLENGE

During the Covid-19 pandemic, the German government provided billions of euros to support entrepreneurs but also fell victim to unscrupulous fraudsters. In this case study, I achieved a significant success in identifying and combating economic crime, specifically classified as subsidy fraud.

As a forensic auditor, I detected a case where an arcade operator applied for millions in bridging aid under false pretenses and received a portion of it. Through a thorough and precise audit review, I uncovered that the applicant, with the support of his tax advisor, had requested fixed cost compensations unrelated to the operational, pandemic-induced revenue losses.

APPROACH AND RESULTS

By meticulously reviewing the applicant’s financial statements from multiple establishments across two federal states and the submitted documents, I was able to expose the fraudulent activities. The review revealed that costs related to the acquisition of a luxurious fleet, consisting of 12 high-end vehicles, were falsely declared as costs for operational assets and staff costs and applied for as operational fixed costs. These costs were incorrectly listed as eligible fixed costs according to the applicable regulations.

My diligent uncovering of these fraudulent actions led to a successful recovery claim and the initiation of proceedings for subsidy fraud by the public prosecutor’s office. This case underscores the effectiveness and commitment to combating economic crime and demonstrates that through careful examination and collaboration, fraudulent activities can be effectively identified and held accountable. The outcome of this proceeding was not known at the time my mandate ended, but the successes achieved so far speak for themselves.

TESTIMONIAL

“Constantine has extensive knowledge and skills in the detection and prevention of financial fraud. His holistic understanding of anti-fraud methodologies and internal controls is outstanding. I have observed his skill in detecting subvention fraud and proposing preventative measures. He is dedicated to keeping pace with evolving fraud patterns which makes him a priceless resource in this domain. I highly recommend Constantine for any endeavors related to anti-fraud.”

Gloria Kulbatzki, CEO and Co-Founder, Lexentra GmbH