Corporate Theft Investigation: Thanksgiving Gesture to Employer – Stolen Inventory E-Newsletter Article
One week before Thanksgiving of 2017, a national tool company’s out-of-state office called Texas Investigative Network, Inc. about a corporate theft investigation. The tool company had substantial inventory losses at a facility for their Texas-based client, and an initial audit revealed $ 700,000.00 in losses over the last three years.
The stolen tool products belonged to the tool company’s client; however, two of the tool company employees were responsible for the handling, inventory, and management of this product. The tool company requested covert surveillance to uncover the cause of their losses and to determine if the two employees were involved. Interestingly, one of these employees – a long-time, trusted employee – resigned recently to “care for his elderly mother.”
TIN promptly and discreetly initiated background investigations and covert, mobile surveillance of both suspected individuals. The week after Thanksgiving, three representatives from the tool company flew to Texas, met with Investigator Pellerin, and notified him that the ongoing, internal audit now revealed $ 1.6 M in inventory losses. Together, the tool company and Investigator Pellerin conducted an extensive interview with one of the employees and subsequently ruled her out as a suspect.
One of the company reps then called the other employee, who had recently resigned, and asked him to come in to finalize some pending administrative matters. The former employee claimed he was unable to because he was caring for his aging mother, so surveillance of this suspect continued.
During TIN’s surveillance, Investigators followed the suspect to a local jewelry store and then to a recycling company that same day. Investigators learned the stolen product had no practical use outside of its designated commercial purpose, yet when disassembled the two types of metals that make up the product are of great value.
Corporate Theft Investigation Results
TIN established that the ex-employee was removing the product from the facility, extracting the two metals from the tool, and then selling the metals to two independent, local buyers. With the cooperation of the two buyers, TIN proved the suspect’s involvement by gathering seller documentation, receipts, and historical purchase details. As authorized by the tool company, TIN provided this information and evidence to law enforcement for criminal prosecution.
Within a couple of days of initiating this corporate theft investigation, police arrested the suspect at his residence and charged him with felony theft. The tool company was finally able to breathe a sigh of relief now knowing how the losses occurred and that further losses to their Texas client would not continue.
About the Author:
Bill Pellerin is the founder and President of Texas Investigative Network, Inc., a Texas Corporation founded in 1994. The company employs licensed investigators in Austin, Corpus Christi, Dallas, El Paso, Fort Worth, Houston, Lubbock, McAllen and San Antonio, Texas, and conducts investigations for several major Texas corporations, law firms, insurance companies, and financial institutions. Learn more