Shortly after assuming his role at a U.S.-based subsidiary of a Japanese corporation, the newly appointed professional manager, Mr. Charles (fictional name for discretion), began observing anomalies in company performance during briefing meetings. Despite longstanding operational struggles and losses, the discussions seemed evasive, avoiding the core issues. Meanwhile, the former general manager, now serving as a consultant, exhibited unusually cautious behavior whenever participating in meetings, raising suspicions.

To identify potential underlying issues, Mr. Charles decided to conduct individual interviews with employees. This initiative unexpectedly triggered a strong reaction from the consultant, Mr. Luke (a pseudonym), who accused Mr. Charles of undermining his professional expertise in management. Such a vehement response begged the question: What could he be hiding?

After several days of interviews, a few employees, albeit hesitantly, hinted that the company’s financial troubles might stem from internal misconduct. However, no one was willing to pinpoint a specific individual, leaving Mr. Charles with little to act on. Recognizing the urgency of presenting a clear recovery plan to the board, he engaged Lex Solution Investigations, a trusted investigative consultancy, to conduct a thorough inquiry.

Investigation Strategy: Focus on Former Employees

Based on the provided employee records—both current and former—Lex Solution Investigations adopted a strategic approach, prioritizing an investigation into ex-employees. One case immediately stood out: a former employee had registered a business operating in the same industry long before leaving the company, though no physical location was established until their resignation.

This detail warranted further exploration. Utilizing their extensive resources and expertise, the investigative team uncovered significant evidence: a hidden storage facility containing a large inventory of the company’s products, misappropriated during the former employee’s tenure. This illicit operation, selling misappropriated goods, had undermined the company’s competitive edge, resulting in lost contracts and substantial financial losses.

Outcomes: Justice and Lessons Learned

Subsequent investigations by law enforcement confirmed a wider conspiracy involving the former general manager, who played a complicit role in facilitating the scheme. The case highlights how internal misconduct can erode a company’s profitability and reputation over time.

For organizations experiencing persistent financial setbacks, internal fraud—often stemming from employees or former staff—may be a root cause. Leveraging the specialized investigative services of firms like Lex Solution Investigations enables businesses to identify and address these challenges effectively. With careful planning and timely action, companies can safeguard their operations, restore financial stability, and hold wrongdoers accountable.