Case study: In-depth due diligence to uncover possible fraud in India
Experience/Not All FCPA Allegations Ring True

Not All FCPA Allegations Ring True

Nardello & Co. was engaged by a US multinational to conduct an FCPA investigation into one of its distributors in India following the company’s receipt of a series of anonymous corruption allegations.

The whistleblower alleged that the distributor had, among other things, paid bribes to government officials through a middleman to win contracts issued by the state government, and had been involved in fraudulent bid-rigging activities.

At the outset of the investigation we conducted in-depth due diligence on the company and its founder in order to learn more about their modi operandi and reputations in the local market. We then interviewed the founder and other key employees to seek their reaction and response to the allegations. Concurrently, we conducted a review of the distributor’s books and records in order to identify any anomalies that may have indicated unexplained payments or bid manipulation.

As a result of this multi-faceted approach, we were able to determine that although there were weaknesses in the company’s internal controls, there was no evidence to substantiate the whistleblower allegations. Our inquiries also indicated that the allegations had been made by a competitor whose distribution agreement with our client had recently been terminated.

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