- Early warning systems should be created so businesses can create profiles of potential fraudsters
- Verdict should serve as warning to business community
Commenting on news that Asil Nadir has been found guilty of 10 charges involving the theft of millions of pounds from his Polly Peck empire, Hitesh Patel, UK Forensic Partner at KPMG, comments:
“Many of the charges against which guilty verdicts were delivered took place as the world’s eyes were focused on economies in decline and the risk of current-day parallels emerging cannot be ignored. Large cases of this nature may be the headline grabbers today, but rather than deflecting attention from so-called smaller crimes, they will shine a spotlight on the chronic and pernicious threat to businesses in these austere times.
“The result of the case brought against Asil Nadir will undoubtedly be seen as a major victory for the Serious Fraud Office. But more than that, it should serve as a warning to executives up and down the country that fraud and impropriety at any level will not be tolerated. The hope must also be that this case casts a shadow on potential fraudsters, putting the impact they have on centre stage so that individuals think twice before they act and companies are better placed to confront the problem before it’s too late.
“All too often comments are made after a fraud is uncovered about how the individual was ‘one of us’ but there are always tell-tale signs organisations should be looking out for. Failure to do so is really no excuse, let alone during a time when the state of economy may encourage fraudulent activity.”
Hitesh’s comments also come in the wake of publication of KPMG’s latest fraud barometer which revealed that the largest group of perpetrators of fraud (by value) is now management, making up 55% of cases. The level of fraud by this group has remained stubbornly stable at £206m (across 34 cases), and serves as a warning sign against complacency for business.
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or firstname.lastname@example.org
Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.