Case Study
Case Study # 2
THE CLIENT
An established corporate services provider offering full-fledged professional accounting, bookkeeping and company secretarial services in Hong Kong
THE PROBLEM
A few long-standing clients spoke to the senior management of the company, expressing their confusion over some recent unsolicited advertising campaigns targeting them from another service provider. The content of the letters and e-invitations comprised almost identical service offerings with very similar choices of diction. Such incidents triggered concern of probable corporate espionage operating inside the company.
THE SOLUTION
VGM conducted a site visit and had a detailed interview with the senior management to obtain a clear understanding of the corporate structure, employee turnover information and client information handling protocols. Our team also devised a comprehensive investigation plan on that competing service provider, aiming to identify the key persons of the target, namely directors, shareholders, and management officers, as well as the source of funds, assets and occupying premises, in order to determine the influence and size of the competitor and thus the potential severity of the situation.
THE OUTCOME
VGM successfully identified a former employee of our client. She appeared to be one of the shareholders of the competitor. Despite holding no managerial or working level positions in the company, the former employee held a significant shareholding in the dubious firm, with her spouse, a local banker, serving as one of the directors.
VGM’s investigation also revealed suspicious access to sensitive client information on the computer system had been started around three months before the said employee tendering her resignation, and had not stopped until 3 days before her eventual leave from our client.
After careful examination of the employment contracts signed between our client and the stealing employee, our professional team of experts across different domains, armed with the evidence discovered, provided litigation support and penned legal letters to the former employee and her firm, illustrating the damages, potential criminal liabilities and her breach of contracts.
The case was settled with the competitor agreeing to the destruction of, and the termination of the use of, all stolen client information and marketing materials, plus a monetary compensation of half a million to our client.