In order to strengthen its grip in the international financial market, a major bank considered an acquisition of another financial firm. This bank hired MEGIDDO to investigate. Our financial team audited the potential financial investment in a discrete, due diligence process including the credibility of the European bank and any other significant/relevant issues. After a thorough financial analysis of the European bank’s financial and other reports while using confidential sources with access to internal data, MEGIDDO discovered that the potential investment was contaminated with critical conflicts of interest. A well-connected director whom might enjoy personal gains and special credit benefits was identified. In addition, there was a claim that the European bank was about to receive an official licence for retail banking activity which we found as a misrepresentation. MEGIDDO examination of the European bank’s top officials revealed a negative reputation as well as far reaching negative implications for our client.
A government agency in Asia assigned MEGIDDO to conduct a financial intelligence review (Finint) in a suspected bribery case, following enormous losses of income from royalties from a major natural resource site. We identified a direct link between a high-ranking official and a bank account in Europe. Our representatives traced the transfer of funds by a subsidiary of the Group holding the concession of the natural resource site to the bank account in question. The amount of funds transferred exceeded $4 million USD. The concession agreement was later revoked and declared “null and void” due to the findings of the corrupted payments.
A significant increase in the consumption of pharmaceutical products, which was clearly not consistent with the number of patients, doctors or medical examinations lead a major hospital in Central America to contact MEGIDDO. We were contracted to conduct Investigative Auditing to prevent leakage of medicines, financial losses of millions of dollars and to understand the causes of the leakages, if present. After an investigation in to the inventory system and suppliers’ data, as well as comparing other parameters of the hospital’s financial accounting records, MEGIDDO uncovered that there was indeed an over usage of medicines by the manager of the pharmaceutical warehouse. The Investigative Audit discovered that this particular manager used to sell medical drugs privately to various customers in and out of the hospital. Furthermore, occasional theft from the storage rooms by local addicts was identified. Being made aware of what caused the additional expenses, our client was able to stop the thefts, and improve the internal control of the hospital.