Misappropriation of property

THE CONTEXT

The Turkish subsidiary of a French bank granted funding for more than 400 pieces of equipment to a manufacturing company in the form of lease financing.

Following a request from the bank, which wanted to verify the physical presence of the leased property, it was revealed that most of the equipment had disappeared. Some of the equipment may have been sub-leased without the bank’s knowledge; other pieces of equipment were supposedly financed by other banks, while a large proportion apparently never existed. The supplier of the financed property is suspected of being involved.

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GM CONSULTANT INTERVENTION

A GM Consultant loss adjuster specialising in fraud risks examined the contract documents, the circumstances of the discovery, the conditions in which the declared fraud took place and the financial consequences.

The loss adjuster’s involvement made it possible to describe and document the fraud mechanism and to quantify the loss suffered by the bank, but also to assess the likelihood of recovering the physical property.