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One of the forensic investigations Holland Integrity Group performed on behalf of a Dutch bank gained a lot of attention in the press. The Dutch bank was the financer of a high profile construction project in Luxembourg. As the loans, totalling almost €100 million, were not repaid under the agreed terms the Dutch bank started to secure its collateral. After a three month forensic review of all relevant documentation, Holland Integrity Group assisted the Dutch bank in making criminal complaints in Luxembourg and Switzerland against the client of the bank for predicate offences and money laundering. In addition, Holland Integrity Group also assisted with disclosure proceedings in Gibraltar to obtain relevant documents regarding the set-up and (true) beneficial ownership of bank accounts in a related offshore company. The Office of the Public Prosecutor in Switzer¬land was able to freeze more than €20 million having received and acted on Holland Integrity Group’s findings regarding the facts and circumstances. Holland Integrity Group was able to prove that €53 million was accounted for as disproportionate management fees, charges of overhead costs, distribution of dividends to shareholders and acquisitions for non-corporate objectives, e.g. the purchase of an airplane, cars, a helicopter and art. The criminal and civil law proceedings in Luxembourg are still ongoing.

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In recent years Holland Integrity Group has investigated, on behalf of several banks, in excess of 40 international cases with a total value of almost €4 billion. In all cases several local and international banks were involved as lenders. In a number of cases we found that the actions of the clients of banks and / or other professionals contributed, either negligently or dishonestly, to the loss or misuse of up to 40% of funds advanced by the lenders. We discovered that clients often provided misleading information to the lenders before, during and after the financing of the projects. Some examples of misleading information are:

• Misrepresenting their financial situation.
• Failing to disclose other financial obligations.
• Non-existence or irregularities in asset valuations.
• False valuations or bogus guarantees.
• Under-estimating overheads.
• Inflating revenue/lease income.
• Non existing leases.
• Fulfilment of conditions.
• Undeclared involvement in related companies.

We identified that many of the banks clients that we investigated would try to conceal how funds were actually used, particularly when such use was inconsistent with the agreed terms of lending and not transparent to the lender. Funds advanced were sometimes extracted, inter-alia, by way of management fees or dividend payments using unrealistic or false projections, false or inflated invoices / purchase prices and non-disclosure of other liabilities. In several cases, the quality of refurbishment and construction work paid for using borrowed sums was sub-standard. Using our findings, Holland Integrity Group supported clients with various legal proceedings against contractors, property developers, trust companies, banks and other related parties in countries all over the world.

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In 2009 and 2010 a listed multinational client identified huge problems within their Luxembourgish and Spanish operations. Holland Integrity Group identified that local country managers misused funds and were highly involved, during their employment, in the set-up of and in assisting with local competitors. Clients were diverted to the local competitors causing millions of euro of lost revenues. Holland Integrity Group assisted the multinational client with the investigation, filed criminal complaints and initiated disclosure proceedings in various Caribbean jurisdictions to identify the ultimate beneficial ownership behind the holding companies of the local competitors. Holland Integrity Group discovered and identified multiple bank accounts, houses and luxury cars in Luxembourg, France, Spain and various Caribbean jurisdictions.

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In the years 2008 to 2010 the Dutch police and the Public Prosecutor’s Office received financial support from the Dutch government in their effort to fight financial crime and money laundering related to organised crime and drugs. Holland Integrity Group, amongst several other audit and investigative firms, received a request to assist in the set-up, coordination and execution of multiple criminal investigations. Holland Integrity Group’s main area of support was investigating money laundering and tracing and recovering laundered funds.

In 2008, Holland Integrity Group assisted a Swiss bank who financed the shipment of Nafta from India to South Korea worth €110 million with tracing and recovering the missing funds. After decontrolling the Nafta for shipment to the buyers, the money was not paid to the Swiss bank but to an intermediary. Holland Integrity Group collected information in Russia, the United Kingdom, Portugal and Switzerland, arranged disclosure proceedings on behalf of the client in Singapore and filed a criminal complaint in Switzer¬land. Ultimately, the Swiss bank was able to recover most of the money.

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Between 2004 and 2006 Holland Integrity Group assisted an investment fund and several high-net-worth’s individuals who invested more than €100 million euro in futures in tulip bulbs. Holland Integrity Group was able to unravel the fraud by identifying the culprits who used legal entities in Switzerland, the United Kingdom, the Bahamas and the British Virgin Islands to mask their involvement in the carrousel of fraudulent transactions. Holland Integrity Group gave insight into all fraudulent transactions and the flow of the invested funds and filed criminal complaints in various countries on behalf of the client.

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