Fraudulent Lifestyle

Friday, September 6th, 2013

The Fraudulent Lifestyle

Our recent commentary on “who is checking the buyer’s lifestyle” has, it seems touched some raw nerves. One of our respondents has asked “how do you check a lifestyle?” it is a very perceptive question. Of course, there are a whole variety of investigative techniques and we do not believe it is apposite to reveal them.

We are dealing with occupational fraud. This is defined as “The use of one’s occupation for personal enrichment through the deliberate misuse or misappropriation of the employing organisation’s resources or assets.” This definition originates in the Association of Certified Fraud Examiners (ACFE) in the United States.

So, let us return to the buyer’s lifestyle. In the context of this briefing the term ‘buyer’ not only includes professional buyers but also anyone with authority to make contractual commitments with third parties. This, in consequence, sweeps in directors, managers, engineers, architects, IT specialists, print staff, etc.,etc.,etc.

Lifestyle indicators that may be indicators of fraudulent activity:

  • Attendance at National and International Sporting events
  • Ownership of expensive sports memorabilia
  • Expensive art collections
  • Exotic holidays
  • Expensive meals in high class restaurants
  • Fast cars
  • Racehorse ownership
  • Excessive attendance at racecourses
  • Wine collection
  • Attendance at expensive auctions
  • Nightclub attendance
  • Ownership of offshore villa
  • Ownership of private business
  • Expensive clothes and jewellery
  • Name dropping of contact with TV/Sports celebrities
  • Travel stickers on briefcase

Be assured that these indicators are not  fictitious – they have happened, and so have many others. One final thought. Two sources of actual or potential fraud indicators are

(i)                The next door neighbour

(ii)              The disgruntled contractor who lost a tender

Would your audit department pick up these signs? read more

If you feel that your systems are not watertight or suspect fraud, give me a call Ray Gambell on 01744 20698 or email me at r.gambell@brianfarrington.com

 Why people with purchasing, risk and proposals issues want to work with the people at Brian Farrington. 

There are three themes that clients tell us over and over again.

First, they tell us they believe they are making a smarter investment working with Brian Farrington — bringing a thorough understanding of their purchasing, risk and proposals issues and a proven track record of enabling excellent returns on their investment.

Second, our clients are confident that they are working with ‘straight-talkers’ that bring experience, expertise and stay focused on client success; not on our next income target (no army of junior consultants that we need to ‘utilize’).

Finally, people, – people just like you – tell us they actually like working with us. They find us easy to work with and collaborative in solving issues that inevitably arise in purchasing, risk and proposals.

About Brian Farrington

Brian Farrington is one of the world’s longest established procurement and supply chain consultancy and executive training specialists. 33 of the current FTSE100 have retained our services, as well as leading organisations in the UK, North America, southern Africa and Asia.

Established in 1978, we have proven expertise and experience in strategic procurement and risk management.

Brian Farrington solutions and services are formed through consultancy, training & development, coaching, interim resource and recruitment.

Our four core areas of purchasing, risk and proposals capability are:

  • Strategic review and commercial governance
  • Performance delivery and transition
  • Major project support including managing contractual risk
  • Learning & development in support of organisational aims.