It had been even worse during the evening meal as many of the workers would have visited the bar before making their way to the dining room. I had a strict rule that no matter what the issue I would not talk work with anyone who had had even a sip of beer. Not just at meal times but even more so when I made one of my infrequent brief visits to the bar.
I’m no wowser but I’m certainly no barfly either. But at the same time I don’t feel obliged to imbibe just because I’d be excluded from a social group if I don’t. In any case the expression ‘in vino veritas’, in wine there is truth, could not be more wrong. In my experience it would be more accurate if the expression translated as ‘in wine there is nonsense’.
After lunch I walked across to my office to take a serious look at the cost report discrepancies. I wanted to check if it was merely a manual data input error. Technically, it was fairly straightforward. First I had to download the accounting data into an Excel worksheet. This was simple as I had access to the accounting data for the project. It was read-only access, I could download data but I couldn’t upload data to, or edit the existing data on, the system. I logged on and selected the ‘export data to Excel’ option. A few minutes later and I had an Excel file with the complete data dump.
Then I created additional linked worksheets to summarise the data into the same formats as produced within the accounting system reports. By three o’clock I had confirmed that I had all the accounting data correctly sorted in the Excel file. I then wrote some code and added it to the source code for my own program which enabled me to import the accounting data from the newly created Excel file. By five o’clock I was able to export the complete data set from the accounting system and import it into my construction management program.
The overall discrepancy was exactly the same as before. I’d just spent four hours confirming what I already knew. But I had made progress, I could now identify where the discrepancies originated at the data level. What I had found disturbed me deeply. But, I now had somewhere to start when I met with the project accountant the following morning.
***
Leonie Wran had no knowledge of the construction management software program I had developed and relied upon to discover the discrepancy. She had assumed that it was an Excel spreadsheet that I had created and she, not unreasonably, had assumed that it was highly likely that there was an error in the spreadsheet.
I guess that she thought that she could quickly demonstrate to me the error of my ways and get back to the real accounting work. I had no problem with her attitude. Even though she thought that she had things covered she listened to me attentively as I began to describe the situation as I saw it.
“Leonie, I have downloaded the full cost data from the accounting system into an Excel file…”
She was visibly surprised and interrupted me by blurting out. “Why? How? You could have simply asked me to download a report for you. Or even just printed out a selection of our reports yourself.”
I smiled. “I had time to spare over the weekend and I wanted to check that the discrepancy was not due to an error during the manual input of data. As it turned out I discovered the source of the discrepancy. Or should I say sources of the discrepancies.”
She clearly wasn’t satisfied with my response and said rather snappishly. “That doesn’t explain why you felt compelled to download the data from my accounting system.”
This time I didn’t smile. “Actually if the accounting data belongs to any single person then I am that person.” I put a hand up in the air to forestall an angry response that I could see coming. “No, Leonie we are not going to enter into a pointless debate about whose data it is. Suffice it to say, I am authorised to download the data and that is what I did. I wanted to check three things. First, had there been an error in the data entry. The answer is; perhaps. That is a point that I will come back to in a minute. Second, I wanted to check if you had reconciled the accounting records with the weekly project statements from subcontractors. The answer to that is that you had. Your accounting totals were the same as the total of the weekly statements. Third, I wanted to check your accounting records with my own records of the weekly statements. There I did find a major problem. There is almost $500,000 difference.” She sat silently staring at me with a stunned expression. After a few moments I said in a voice devoid of emotion. “Houston, we have a problem!”
Eventually she asked, “Are you sure?”
“I’m certain.” I had been watching her carefully. She was either a consummate actor or she was as much in the dark as I was. Deciding to take a chance that she was not involved in what I believed to be a major fraud I added, “But let me show you.” I fired up my construction management program. “I’ll cut to the chase. First this is the summary of the weekly statements recorded with your accounting data.” As I spoke I displayed a series of screens that presented a dollar amount coupled with a contract name, date and the name of a contractor. “Now here is the list of weekly statements that have been approved by me and recorded in my program.” Again as I spoke I displayed another series of screens presenting lines of data similar to the previous screens. “Now here’s the kicker. I am now going to display a screen listing the differences between the two sets of data.” I then displayed a single screen with lines of data similar to the previous screens. Clicking a command button on the screen the printer on a table in the corner of my office stirred to life. Pointing at the printer I said, “That is a copy of what is on the screen. It shows fifteen weekly statements recorded in the accounting records of which I have no knowledge. You can be assured that I didn’t authorise them for payment.”
She was plainly bewildered. “But…but how can that be?”
“That is what we have to find out. After reconciling some payments still to be processed, the amount at the bottom of the screen is the total discrepancy. Those fake statements average almost $33,000.”
Leonie finally lost her composure and almost wailed. “But you must have signed them. How else could they be entered into the accounting system?”
“As I said before. That is what you and I have to find out.”
“You are certain that you didn’t authorise them?”
I replied a little testier than I had intended. “Leonie, it’s no use grasping at straws. I did not authorise those weekly statements. We are going to get nowhere if you can’t accept that point. If necessary I will have you removed from the project and bring in someone who will work with me on this. Let me be clear. If it turns out that you have been either dishonest or incompetent I will hang you out to dry. However, I don’t think that you are dishonest or incompetent. That’s why I’m seeking to work with you on this.”
She instantly responded, “No. No. I’m sorry. It’s just such a shock. I accept what you say. I can do this. I need to do this.”
“Okay. First thing. You need to track down the originals of each of those bogus weekly statements. But whatever you do you must ensure that no one else knows about this. Absolutely no one. Is that clear?”
“Yes. Of course. I understand.” She gestured to the stack of document folders that she had brought in with her and said, “They’ll all be here.” After referring to the list that I had printed she then started rummaging through one of the folders. A few moments later she extracted a single sheet of paper and held it up for me to see, saying “Here’s one.” A signature remarkably like mine was at the bottom of the page.
As I was reaching out to grasp the document I realised that if I had signed it then it would have my fingerprints on it. But if it was a forgery then it would not. So, instead of taking it from her extended hand I said, “Leonie. Fingerprints. Please place it on the desk. We both need to get a pair of gloves before we continue.”
Wide-eyed, she placed the sheet of paper on my desk as I had asked.
“Please go and get some clear plastic pockets so that we can protect the documents as you extract them from your folders. I’ll get one of the storemen to bring some cotton glove
s across to the office.”
A few minutes later a man arrived with four pairs of white cotton gloves and a stores receipt for me to sign. Leonie arrived just as he was leaving. She had a wad of A4 sized, clear plastic pockets in her hand. After putting on a pair of gloves she commenced sorting through the folders. As she extracted a document she placed it in a separate plastic pocket on the desk in front of me. Some were single sheets but most were two or more sheets that had been stapled together. One by one I picked them up and examined them. Where they comprised more than a single page I gingerly removed the document to examine the signature page. They were all the same. Each one had what looked like my signature at the bottom along with a date. They looked legitimate. They all appeared to have been countersigned by one or other of my supervisory staff. Either an engineer, an inspector or a quantity surveyor. Since I knew that I had not signed at the bottom of the page then it was probable that the counter-signatures were forged also.
***
When she had finished extracting all fifteen of the dubious weekly statements, she proceeded to examine each of them in turn. When she had looked at them all she said musingly. “Well the signature looks very much like yours. It sure is a good forgery.”
I had been thinking the same thing. It might be difficult to convince everyone that my signature had been forged. I then recalled my initial thought. The signatures were all alike. Maybe too alike. I picked up two of the documents, placed one over the other and held them up to the light. Then sliding one against the other I aligned my signatures. When I saw that they matched perfectly I exclaimed, “Bingo!” One by one I then proceeded to check each of the signatures. They were all an exact match.
Looking up at Leonie I asked, “Would you mind extracting a couple of the other weekly statements from the folders for me?”
She did so without making any comment. I then compared my signatures on the genuine weekly statements. The two signatures were not identical. Similar but not identical. Slight differences could be readily discerned. I passed the genuine documents across to Leonie and said, “Compare the signatures and tell me if you think that they are identical.”
She had been watching what I had done and knew what I meant. Moments later she responded, “No. They’re very similar but definitely not identical.”
I gestured to the stack of false documents. “Now check each of those signatures with each other.”
It took several minutes before she finished checking each one carefully. Looking back at me she said, “They are absolutely identical. How can that be?”
I grinned and said, “The forged documents have been signed by a computer, the signatures are too exact to be real. I think that we will find the same for the co-signatures. Someone has probably scanned a signature of mine and is using a computer program to print it onto the documents. They might have used some sort of CAD plotting software.”
Leonie nodded slowly. “I can see that now. So, where do we go from here? What should we do?” Her face was now a study in worry. I felt sorry for her. She was probably wondering if she had been at fault, and what the consequences might be.
I had been asking myself the very same question and asked rhetorically. “What do we do next?”
My words hung in the air for a moment before I answered my own question. “Well, first we need to sort out who had the information and access necessary to pull this off. There is one aspect that gives us a clue. All of the bogus statements have been set at amounts that ensure that the total expenditure for each sub-contract will not exceed the target amount that I have set. Those target amounts have been set by me for my own project monitoring purposes. They are known to my supervisory team but not disclosed to the contractor or to the Accounts Department. Sadly that seems to indicate that at least one of my team is involved. But he couldn’t do it on his own. I can’t see him carrying it out without the help of someone working in the Accounts Department.”
Leonie nodded her head in agreement and said, “I agree that someone in the Accounts Department has to be involved. I can see that the claiming payment for work not done without exceeding the target amount for each contract is significant. If a target is exceeded then someone would check the data to see where the overrun occurred. But there was no cost target overrun, so how did you locate the problem?”
“I kept track of the weekly statements by retaining a copy of every statement that I had approved. I then entered the information into my construction management program and discovered that your total project expenditure was about $500,000 higher than mine. Clearly the bogus claims were inserted into the system without passing through my hands.”
“How do we discover who the forgers are?”
I paused thoughtfully before replying. “Fingerprints. Perhaps we could take everyone’s fingerprints and have them compared with fingerprints on the bogus statements.”
Leonie did not look completely convinced. “That would mean reporting the problem immediately. I was beginning to hope that we could find the culprits before we reported the matter…”
I was suddenly struck by a thought and interrupted her by exclaiming. “I think that you are right. We have to do our best to discover the perpetrators before we report it, which only gives us a few days.” It was at that point that the answer hit me like a blow and I said, “Since we believe that there are least two persons involved, one from my team and one from yours. Now what couple do we know that might fit that description?”
Leonie gasped. “Lex Robertson and Heino Pops.”
I gave a wry smile. “Exactly! They just might be the ones responsible. I don’t know Lex Robertson at all but Heino is someone that I thought that I could rely on. The same with the rest of the team. But it has to be one of them.”
“The same goes for Lex. I have always thought of her as being completely reliable. I like her. If it’s true then it will be so sad. They always looked to be such a good couple together.”
I agreed. Somewhere in their thirties, they were an attractive and highly recognisable couple as both of them had a striking crop of very blond hair. It was hard to accept that they would be involved in criminal activity. “Well, I think that we should talk to them. I suggest that you bring Lex Robertson to my office at say one o’clock this afternoon. Don’t give her any warning. Just tell her that I want to reformat an accounting report or something like that. I will get Heino along here at the same time as well.”
“Yes. I can do that. But in the meantime is there anything that I can do?”
I paused for a moment, thinking about what should be done before responding. “You should check if any payments are in the pipeline. If there are, then put a hold on them. If any problems arise then speak to me immediately.”
After Leonie left my office I removed the small carton from a drawer in my desk. This contained the security gadgets that Brian Clements had obtained for me when I was in Sydney. Selecting a small webcam and sound recorder combination with WIFI capability I inserted new batteries and turned it on. Five minutes later I was able to pick up the webcam feed on my laptop. Everything that the webcam saw and heard was recorded on my hard drive.
Standing up I placed the camera discretely on the top level of the book shelves on the wall behind my desk. Sitting back at my desk I checked that the webcam’s field of view covered the front of my desk. I was satisfied. It would record everything to be seen and heard in the vicinity of my desk. I was now ready for the meeting at one o’clock.
***
It had been relaxing sitting on a bench in the shade casually watching the crowd leaving the dining room after lunch. As Lex Robertson and Heino Pops emerged I saw that they were accompanied by Leonie Wran who was engaged in an earnest conversation with Lex. A few moments later Heino disengaged himself and commenced striding back towards the construction supervisors office in the administration building. I casually stood up and set off on a course that would intercept him before he got to his office. When we were just a few metres apart I hailed him and,
when he stopped walking, I asked if he would join me in my office in ten minutes time, at one o’clock. If he had any sense of foreboding he did not show it.
***
A few minutes before one o’clock I turned the webcam on again and checked that the field of view had not changed. I was now ready for the meeting.
Promptly at the specified time there was a knock on my door and Heino entered. He had barely sat down in a chair in front of my desk when there was another knock on the door. A moment later Leonie Wran and Lex Robertson entered and I indicated for Lex to sit beside Heino. As soon as they saw each other their faces turned to stone. Their previously relaxed expressions hardened. I could only guess at their thoughts but it was probably clear to them that they were in trouble. If indeed they were guilty then they would have realised that the reason for both of them to be in my office together had to be connected to their illegal activities.
Looking silently at each of them in turn for a few moments I eventually spoke. “Lex, Heino it gives me no pleasure to ask you here today.” I then reached into my desk, removed the stack of plastic pockets with the forged statements and placed them on my desk in front of them. Again I waited for a response before saying. “Yes. I have asked you both here this afternoon to talk about these documents.”
There was clearly no doubt about their guilt. Lex was clearly distraught and Heino put his arm around her shoulder. She leaned her head against Heino’s shoulder and sobbed. I could hear her mumbling. It sounded like “Thank God it’s finally over.”
Heino eventually looked up at me and said, “I’m so sorry boss.” He then let his eyes drop and he sat there mute. He was totally devastated. He looked like a man awaiting his turn to be beheaded on the guillotine. It pained me to see anyone in such anguish. Much less someone that I liked.
Smoking Gun (Adam Cartwright Trilogy Book 1) Page 10
