Wed, Jun 10, 2020

Case Study - Fraud and Corruption Allegations at a Football Club

Kroll was hired by a leading Brazilian football club to conduct an independent investigation into potential fraud and corruption by the club’s former administration.

The client had been the subject of investigations by the local police and wanted to assist the authorities by providing a detailed summary of internal fraud and corruption allegations involving payments to fictitious vendors, bribes and kickbacks paid to players’ agents, corporate credit card abuse and irregular payments to the club’s board members.

Kroll’s work involved interviews with current and former staff, computer forensics, financial investigations and process mapping. Kroll also analyzed contracts with 12 professional players, their agents and associated companies.

Kroll found evidence of a number of irregularities, including serious breaches to professional sports regulations, illegal contracts with minors and numerous contracts with consultancy firms that did not provide any services to the client. Among the issues identified, there were also substantial personal expenses paid with corporate credit cards, including at luxury resorts, electronics stores and even an adult entertainment facility.

Kroll’s findings were shared with the club’s counsel to assist in litigation aimed at recovering the funds. Results were also shared with local authorities.

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