We advised an international manufacturing and distribution group on an urgent internal investigation into suspected mismanagement and embezzlement by a management board member of its Polish subsidiary. The potential financial damage identified exceeded EUR 1 million.
The matter began with a whistleblower report. Our team responded immediately, supporting the client in launching and conducting a multi-week forensic investigation. This included interviews with employees and contractors, a review of financial, accounting and corporate records, and close cooperation with forensic auditors.
The investigation uncovered evidence of several types of misconduct. These included intermediary schemes involving inflated invoices issued by an entity covertly controlled by the board member, payments for fictitious advisory services, private travel expenses improperly charged to the company, and misuse of corporate credit cards.
Based on our findings, we prepared a comprehensive investigation report that enabled the shareholder to take decisive corporate action, including dismissing the board member. The report also laid the groundwork for further criminal and civil proceedings aimed at holding the responsible individual accountable and recovering the losses suffered by the company.
Our support continued after the investigation, including during a full tax audit and in connection with corrective tax filings. This helped the company address the tax consequences of the misconduct and reduce the risk of additional financial and criminal liability.
The matter demonstrates JDP’s ability to combine white collar crime investigations, corporate governance advice, employment law and tax support within a single cross-border mandate. Acting for a foreign parent company in connection with misconduct at its Polish subsidiary, we helped the client regain control of the situation, protect its assets and prepare for further legal action against the responsible individual.
The matter was handled by a team led by Marcin Chomiuk and Krzysztof Kaczor.