Also known as misappropriation of funds, director fraud occurs when an individual in this powerful position uses investors’ money for personal benefit. Regardless of whether you are an employee, partner or other stakeholder, discovering that a director has been stealing or embezzling from their company and its investors can be extremely distressing.
But you must not turn a blind eye. If you take action against director fraud quickly and effectively, it may be possible to recover investors’ losses. Book a consultation with IFW to begin an expert investigation and unearth actionable evidence that can help you to prove and prosecute the offender.
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Director fraud investigation with a proven track record
Rigorous investigations
Our highly-skilled investigators, analysts and researchers are globally-renowned for their ability to crack down on fraudsters in jurisdictions around the world. We solve even the most sophisticated crimes with unrivalled efficiency and expertise.
Proactive procedures
Combining a dynamic approach with direct access to local databases, expert witnesses in cyber fraud, and a network of confidential informants, IFW conducts every investigation with robust techniques tailored to tackle challenging circumstances as they unfold.
Global connections
IFW leverages exclusive relationships with state, federal and international law enforcement agencies to aid your investigation. We can also liaise with local and foreign correspondent lawyers to expose money trails and hidden assets in almost any country.
Actionable evidence
Our experienced investigators equip you with a thorough brief of evidence to be used for criminal proceedings in the relevant jurisdiction. Armed with proof of director fraud, you can take legal action against the defendant to seek justice and recover your losses.
Total confidentiality
IFW is committed to protecting the privacy and confidentiality of every client. We perform each investigation with unparalleled professionalism and discretion, encrypting all personal data and securing consent before disclosing any case details.
Frequently asked questions
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Director fraud occurs when a director of a company intentionally and deceptively uses investors’ funds for his or her own personal gain. It is a criminal offence and, if proven guilty, the director may face a disqualification order, fine, imprisonment and personal liability for any resulting company losses.
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Illegal phoenix activity is a corporate crime whereby the director of a company that cannot afford to repay its debts closes down the company and creates a new one in its place. By transferring assets from the old company to the new, the director can continue business and avoid paying the creditors, taxes and wages of the old company.
As leading specialists in all forms of company director fraud, IFW can investigate illegal phoenix activity across the globe. Please book a consultation today for tailored support with your case.
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Common warning signs of company director fraud include:
- The allocation of raised funds is not disclosed or clarified;
- Research and development (R&D) updates are rarely or never released;
- Unusually expensive consulting or service fees are paid to associated parties;
- Account records show abnormal or unexplained expenses; or
- The director takes out loans, makes asset sales or enters purchase agreements with no feasible business motive.
If you suspect that a company director is misappropriating investor funds, please contact IFW immediately for assistance with your case.
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In Australia and many other countries, directors have a legal duty to perform the responsibilities of their role with due diligence. If a company director breaches this duty for personal gain, such as in the case of fraud, consequences can include:
- Reputational damage;
- Criminal proceedings (if personal liability can be established);
- Significant financial penalties;
- A disqualification order; and
- In severe cases, imprisonment.
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Director fraud investigations are generally completed within one to three months, with duration depending on the complexity of the crime and whether or not legal proceedings are taking place.
IFW investigators can assist law enforcement officials in filing search warrants and/or criminal charges against the defendant, a process which will extend the length of time it takes to close the case.
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The cost of an investigation into company director fraud rests in the complexity of the case, the losses incurred, and the country in which the offence was committed.
At IFW, our expert investigators will prepare a comprehensive proposal for your case, specifying the suggested budget to maximise the chances of a successful result.
Philippines National Police 
Californian Association of Licensed Investigators 
NSW Police Force 
Philippine Securities and Exchange Commission 