Corporate crimes are real, they have always been, and will always be, and today, they are becoming automated and more difficult to detect. Sadly, we are all victims and banks (financial institutions) are the leading crime stars.
My friend, John, who is also a business associate, had just recommended via chat that I give audience and attention to two young graduates, both with BSc. Degrees in Accounting.
He also mentioned how they walked into his office seeking employment despite not having placed any formal or informal advert.
About an hour later, John rang my cell phone, and as I answered the call, hoping to learn more about our last business conversation, John said; “I see you have read my Whatsapp chats. Now, let me be a little more specific. The two young graduates – Isaac and Paul by name, were about leaving when Isaac hesitated for a moment, turned to me and asked, “Sir, would you permit us to just examine and reconcile your Bank statement for one month only? I mean carry out an Audit exercise on your bank statement for just a month.” He quickly re-phrased as he saw the look on my face.
Enumerating further, John said, “Mike, to be frank with you, Isaac’s request took me by surprise and just when I thought he was done, he added.” “Sir, I promise, you will be amazed with our findings and how it will help to improve your business’s cash flow.” “Those words sent shock waves to my spine because my business has been having liquidity issues for quite a while.” John recounted.
“Filled with curiosity, I did a little background check on the duo and made available my Bank statement from 1st January, 2014 to 31st December, 2014 and just like Isaac promised, I was amazed, and honestly, I am still amazed with their findings,” John said. Then, he paused for a few noticeable seconds, hopefully to catch his breath, and then he continued, “Mike, my Bank has been robbing me with too many fraudulent deductions. I have been dealing with wolves in sheep clothing and I am optimistic your business account is also experiencing these fraudulent deductions."
John spoke with so much certainty for I could feel it in his voice, and this left me with thoughts of suspicion. Could this also be happening to me? That was the question in my thought when he said, “Now, let’s talk about you. I mean, come to think of your business with an annual turnover of N7 Billion Naira and counting and what these wolves called Banks would have stolen from it.”
"Many corporate crimes are left unreported, making corporate thieves to bask in their crimes".
Then with some degree of irritation and vexation, he said Mike, these corporate thieves are bleeding us dry through tiny unnoticeable cuts; and this is the best thing I can do for you as a friend who has your success and business health at heart. Therefore, for the sake of your business and not even for the job the young graduates seek, please grant them the desired audience and I promise they would wow you just like they did me”. John concluded before ringing off to address a personal matter.
John’s message and how well he presented it continued to echo in my thoughts and though I have always been a sceptical person by circumstance, I did not allow my scepticism get into the way this time.
I engaged Isaac and Paul in the week that preceded our discussion, and just like John; I printed my account statement for 2014 financial year and setup a little office for the duo in my complex.
I wasn’t expecting them to find anything because I had great trust in my bankers and my bank, and I also had a strong conviction that the Apex bank was really up to their task in checkmating them. I held all three of them (my bankers, the bank and the apex bank) in high regards. Besides, I also had some professional accountants on my payroll that monitors the transactions of my company.
Unfortunately, by the time Isaac and Paul were done, I was wrong. My business has also been a victim of the same fraudulent deductions and according to the young graduates, the deductions usually dates back to the very day one takes an account relationship with these banks.
Some extracts from their report goes thus:
- Except for October 2014 transactions, a wrong Commission on Turnover was charged on all other transactions in that financial year.
- In line with Apex Bank 2013 Guidelines for Banks and other Financial Institutions, COT charges should not exceed N2 per mille for 2014 financial year but Mike Global was constantly been charged above the guides specification, with some months as high as N5 per mille.
- The company has also been constantly charged management fees on its loan which has been set on auto renewal. Management fee is supposed to be a one-off payment on the life span of any loan.
- The account was characterized with excess charges and fees; which include loan renewal fees, commitment fees and account statement charges.
- More so, there are so many duplicate SMS notification charges.
- Lastly, the bank had constantly charged Mike Global COT and VAT charges on failed inter-bank transaction during the financial year.
In summary, fraudulent deductions amounting to N22,244,756.34 (Twenty two million two hundred and forty four thousand seven hundred and fifty six naira thirty four kobo) was discovered during the 2014 financial year Bank statement reconciliation/audit.
“OMG!” Gasped Mike Global, and then he said “banks are now the new crime stars in this electronic age, and their takings are in millions.”
Looking cheated, robbed and disappointed with the system he had so much trust in, and in the crop of professional accountants living off his company, Mike who was now eager to know the way forward asked. How do I recover this money without a long and endless legal battle?
In response, Isaac replied “the same way we recovered Mr. Johns fraudulent deductions Sir.”
Mike, now more curious than ever said “wait a minute; my friend never mentioned anything about recovery. You mean he has recovered his from the bank? “Yes Sir” Paul responded. “We actually begged him to save that part of the story for us”. Paul added, with a mild smile on his face.
Happy and relieved, Mike said, “you guys are awesome; you have done enough work for today. Let’s go down town for lunch and talk about the recovery and your official employment as we eat”.
Isaac and Paul were immediately engulfed by joy with the news of the employment and going down on their knees they thanked their new CEO with all their hearts.
For funds recovery and more, watch out for episode 2