When you are wrongly accused of money laundering…
The director of a company that had adopted a multi-level marketing sales model found itself accused of money laundering in its Hong Kong and mainland China operations. Prosecutors alleged that the sales model amounted to an illegal pyramid selling scheme. The client, who believed he had not committed any crime, engaged Control Risks’ Expert Forensic Accountants to support his case.
Control Risks' approach
We were required to form an independent judgement as to the nature of the company’s receipts and payments. In particular, the client wanted us to opine on bonus payments to affiliates and whether the fund flows examined bore the characteristics of a money laundering operation. Through extensive funds tracing and forensic accounting, we were able to provide written and oral evidence as to the true nature of the client’s operations.
Evidence gathered by Control Risks’ Expert Forensic Accountants was accepted by the District Court of Hong Kong and resulted in the client being acquitted of all charges.