Automated Auditors, LLC has worked on several fraud, litigation, and dispute resolution cases over the past decade since we were founded in 2002. We have provided complex data management support for cases involving royalty fraud, franchise disputes, election fraud, tax scheme fraud, and accounts receivables fraud. Narratives of how our data mining experts have developed customized algorithms to combat fraud in multiple industries are described below.
Franchise Fraud: Our data mining experts provided data mining support for Case 02-Civ-1565 “Sensormatic Security Corp (SSC) vs. Sensormatic Electronics Corporation”, for which Bruce Dubinsky (our client) was retained as the expert forensic accountant via the plaintiff. The plaintiff, SSC, claimed that Sensormatic Electronics Corporation breached their contract by omitting to pay commissions on the sale of CCTV security equipment, and also by authorizing a third-party, ADT and Wallace, to operate in SSC’s franchise area. Commission calculations were processed using customized SAS algorithms, and Automated Auditors was retained to correctly interpret the SAS programs and to reconcile various commissions data bases. The case eventually settled, with Tyco/Sensormatic purchasing SSC, the last franchise owner, for $81 Million.
Accounts Receivables Fraud: Automated Auditors was retained to assist in reconstructing accounts receivable records for several years following two accounting system failures and a faulty accounting software conversion over the past two years, and four years of faulty financial reporting. The client maintained records in several independent and disparate data bases for production, operations, and accounting. Because no common identifier existed among the three for client census data, our data mining experts were called in to join multiple sources of client charges with payments against the charges, to the appropriate client, using advanced fuzzy matching techniques. Our systematic approach allowed us to not just identify the necessary adjustments for accurate financial reporting, but also to pin-point and quantify the errors made so that the gaps in controls could be filled.
Election Fraud: In support of a case involving a large labor union, Automated Auditors was hired to develop an Access data base that tracked letters sent to contributors of election campaigns. Letters were sent to contributors to verify the legitimacy of their contributions, to prevent and detect election fraud. Our role was to develop the data base and to put a UPC scan symbol on each letter so that our client could quickly scan each letter to track it in the data base.
Automated Auditors has the ability to meet your customized programming needs in all areas of fraud detection and prevention.