A multi-national software company (MNC) having operations globally received a series of allegations about Mr. AK, a manager in senior position at Mumbai. The allegation was that he was receiving bribes and for that he ha

Subsequent Level Investigation In order not to arise any suspicion in the minds of AK, the FA should take up cases of few other senior managers also. The management should spread the word around that it was a routine investigation. FA should gather details of financial position and list of relatives of AK. These can be gathered from the statements and declarations periodically made by the employees with the company. Income tax (IT) returns filed by AK or his relatives in previous years can be referred. Notice, assessment orders and any such communication with IT Department can be verified from IT website or emails. FA should conduct investigation into the financial affairs of the close relatives of AK. Normally, such employees do not buy assets in their own names, but in the name of the close relatives. If any new assets have been acquired during the last two or three years by them, FA should conduct a background check to see whether they possess the necessary means or qualifications to earn the alleged type of income disclosed by them. For example, if the earnings of the relatives are stated to be from commission, brokerage, tuition income, etc., then a closer scrutiny is required. Sometimes, in the name of wife or close relative, huge income is said to be earned from running beauty parlor. FA then should check whether there is actually such a parlor and if yes, whether the clientele is such that the alleged income can be earned therefrom. If any immovable property had been acquired in the recent years, it should be seen whether any extra consideration besides the one stated in the registered deed of conveyance had been passed on or not. This is an easy way to siphon out bribes received. Search report in his name relating to properties owned by AK or relatives from legal department/lawyers of the company. The lifestyle of AK should be investigated by FA to see whether the same is commensurate with the salary drawn from the company. Foreign trips or purchase of luxury cars in recent years can be tracked. FA should find out whether the relatives of AK have vested financial interests in any company, which has been supplying work to or receiving any outsourced work of the MNC. This will give an indication of favoritism and close dealings between AK and these entities. In such case, certain bribes said to be padded on to these entities to get the work and accounted by MNC in some other manner, may not wholly flow out to these entities. AK may pocket a portion of it and the complaints could then be true. FA should investigate the major cash outflows made through AK to see whether there are any fees paid for bogus referrals, commission, consultation fee, etc. or to see whether they could be inflated by carrying out comparative study of the earlier periods, industry trends, tests of reasonableness, etc. An interview could be scheduled with the Target and presented these evidences to check for his response. Interviews of targets is an important step undertaken in forensic investigation assignments wherein the targets breakdown and confess. Their confession statement is an important document in the court of law for initiating criminal proceedings against them. Evidences obtained as part of Data Analytics and Disc Imaging have to be thoroughly checked. The findings should be evaluated in an unbiased manner by the FA to determine the correctness of the complaints.