Case Study: Housing ALMO – Reactive Investigation into Property Rewires
Client: Housing ALMO
Review: Reactive Investigation – Property Rewires
Background: Housing ALMO, a prominent housing management organisation, faced an alarming situation regarding the unusually high number of full rewires being conducted on its void property stock. Historically, the number of properties requiring such extensive electrical work had been significantly lower. This sudden spike raised suspicions of potential internal and external malpractices.
Method: TIAA, a leading provider of investigative services, was engaged to conduct a thorough criminal investigation. The referral highlighted concerns that internal staff within the repairs team might be complicit in the suspected wrongdoing. The investigation aimed to uncover the root causes of the increased rewires and identify any fraudulent activities.
Investigation Process: The investigation was meticulously planned and executed by an Accredited Counter Fraud Specialist. The specialist ensured that all procedures adhered to legal standards, enabling the findings to be presented to the Economic Crime Unit within the Metropolitan Police.
Findings:
- Supplier Misconduct:
-
- The investigation revealed that the supplier had falsely claimed that full rewires were necessary for over 105 void properties. This misrepresentation led to unnecessary and costly rewires.
-
- Additionally, the supplier was found to have submitted false and duplicate invoices, amounting to over £100,000 for works that were never carried out.
- Internal Complicity:
-
- It was discovered that certain internal employees had played a significant role in allowing these fraudulent practices to go unnoticed. Their actions, whether through negligence or active participation, facilitated the supplier’s misconduct.
Recommendations: To prevent such issues from recurring, several recommendations were made:
- Strengthening Internal Controls: Implementing more robust internal control measures to detect and prevent fraudulent activities.
- Enhanced Monitoring: Regular audits and reviews of supplier activities and internal processes.
- Staff Training: Providing comprehensive training for staff to recognise and report suspicious activities.
Outcome: The investigation’s findings were compiled into a detailed report, which was then forwarded to the Economic Crime Unit within the Metropolitan Police. This ensured that appropriate legal actions could be taken against the involved parties.
Conclusion: This case underscores the importance of vigilant internal controls and the need for regular audits to safeguard against fraud.