In recent years, there has been a growing problem in Germany in relation to the activities of certain notaries who are breaking the rules of professional ethics and increasingly entering into arrangements with members of the criminal underworld. It is these individuals who, taking advantage of legal loopholes and the difficult life situation of many people, create fictitious companies with the aim of carrying out large-scale financial fraud.
Problem description – notary offences
The scam scheme is relatively simple but extremely effective. The organisers of the crime look for people who are poor, homeless or in a difficult life situation. These people, usually unaware of the consequences, are encouraged to sign notarial documents whereby they become ‘presidents’ of newly established or existing companies. In exchange for their signatures, they receive symbolic amounts, often several hundred zlotys. What is more, in some cases the criminals use data from stolen documents.
On the basis of these documents, the criminals place orders for large quantities of electronic equipment or other goods, pretending to be companies managed by the ‘presidents’. The goods are received, but the invoices are never paid. As a result, companies that have not been paid submit their claims to insurers, who in turn take action to investigate the matter.
Our role as an intelligence company
When an insurer receives a report of potential fraud, it turns to our intelligence company to carry out a thorough investigation. Our task is to verify the identity of the persons in whose name the companies have been incorporated and to establish whether they have actually been involved in transactions in Germany. In the course of our work, we often discover that these individuals are completely unaware that they are the ‘CEO’ of any company.
The story of one of the calls
One day we received a notification from one of our regular clients – a large international insurer. The report concerned a company that had ordered electronic equipment worth several hundred thousand euros and then failed to pay. The insurer, suspecting fraud, turned to us for help in finding out who was actually behind the company.
We conducted an investigation, which led us to a poor person living on the outskirts of a Polish town. This person was surprised to learn that he was the ‘CEO’ of a German company. As it turned out, someone had stolen her identity card a few months earlier. Our investigation also revealed that this person had never been to Germany, which clearly indicated the falsity of the whole procedure.
Next steps and conclusions
On the basis of the evidence we gathered, the insurer was able to safely reject the claim made by the company, which had not received payment for the equipment delivered. In this situation, the insurer did not suffer a loss. In cases where the case goes to court, our reports and the evidence collected are a key element in legal proceedings.
Summary
Our intelligence company plays a key role in detecting and preventing fraud related to the activities of fraudulent notaries in Germany. Thanks to our activities, insurers and affected companies can successfully defend themselves against frauds that could lead to huge financial losses. The example we have described is just one of many cases that show how important our work is in the fight against organised crime.
Author: Piotr Dobosz
*Client data has been anonymised prior to publication.
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