Third Party Payees in Latin America

FCPA Investigation - Latin America

A publicly-traded US company with subsidiaries in Latin America hired Nardello & Co. to investigate possible FCPA violations when it discovered that one of its consultants had asked the company to make payments through a third party. During the course of the investigation, Nardello & Co. discerned that certain country managers may have been complicit in allowing the questionable payments to be made. Nardello & Co. sent teams into two Latin American countries to conduct interviews and capture forensic evidence from local computers on behalf of the parent. A comprehensive investigation of the consultant also revealed that one family member was a government official and another was suspected of money laundering. It was ultimately determined that the consultant was using the third party payees as part of a tax evasion scheme.