Vernon Sawers – Principal

• Misappropriation of funds at a Cashiers Office by an employee of a University, approximate loss value $60,000.
• Diversion of payments from customers of a waste management company into an employee’s banking account, approximate loss valued $306,000.
• Diversion of payments from customers of a publishing company into an employees banking account. The scheme involved collusion between employees in the accounts receivable and payable functions. The scheme was concealed by payments to suppliers being diverted into the company’s banking account. The resultant credit was used to credit the customers account and conceal the fraud. The payment to the supplier was then duplicated. Approximate loss value $170,000.

Theft of Cash
Misappropriation of funds by a Treasurer of a Community Housing Association. All misappropriated funds were recovered.

Theft of funds by an administration manager at a suburban shopping centre. The scheme involved the misappropriation of cash funds and the concealment of the shortages by way of diversion of other revenues through the books of account.

Theft of funds by a finance officer at a community employment service. Approximate loss value $68,000.

Dual Cash Receipt Book Scheme
Investigation and quantification of losses arising from the misappropriation of cash receipts by a Manager at a Caravan Park.

Theft of cash by cashier
Theft of cash by a cashier at a museum. The scheme involved the misappropriation of cash by the issuing of complimentary passes when entrance fees were payable in order to conceal a shortage of funds. The investigation involved calculating the estimated loss of funds over the estimated period of operation of the scheme. Approximate loss value $80,000.


MISAPPROPRIATION OF CASH - SKIMMING

Intermediary Companies
This involved the skimming of profits from intermediary companies that had been set up by a tobacco co-operative as part of a sanctions busting scheme during the sanctions era in South Africa. The intermediary companies had been set up to arrange the movement of tobacco via various intermediaries in the market on to European markets. When the sanctions era came to an end, the scheme continued. Normal transactions associated with the business were put through these various entities. This resulted in an investigation and criminal charges being brought against the General Manager of the Co-operative at the time who had orchestrated the various schemes as well as providing litigation support to the recovery actions that ran parallel to the Criminal proceedings.


PAYROLL SCHEMES

Fictitious Employee Scheme
Quantification and adjustment of losses following payments to fictitious employees on a payroll. This included the preparation of affidavits for use in Court. For purposes of the affidavit, flow diagrams and charts were prepared explaining the operation of the scheme and the methods utilised to conceal the loss and divert funds. Judgement was successfully obtained. This aided the recovery process. Approximate loss value $250,000.


ASSET MISAPPROPRIATION - INVENTORY

Stock Theft and Misappropriation of Invoice Proceeds
Quantification of losses arising from the theft by an employee of hot water heating systems. The employee installed the stolen hot water heating systems at customers premises and diverted the proceeds from the sale into his banking account. Approximate loss value $60,000.

Theft of premium wines
Quantification of losses following the theft of premium wines from a major museum cellar at a leading Australian winery. Approximate loss value $600,000.


KITE-FLYING

Quantification of value of transactions involved and losses suffered by several major banks as a consequence of a scheme of kite-flying operated by a used motor vehicle dealer in the Cape Province of South Africa. Reports were prepared for use by the State Prosecutor during the course of the Criminal Trial. The value of transactions involved was approximately $45 million.

A successful conviction was obtained and the perpetrator sentenced to an effective term of imprisonment of nine years. The matter went on appeal and the conviction was upheld.

Quantification of recovery of losses following the operation of a scheme of kite-flying by a member of a Credit Union. Negotiations surrounded the losses suffered by another Credit Union that processed various of the transactions and the liability for losses of each of the Credit Unions involved in the scheme. Approximate loss value $70,000.

Product recalls and withdrawals [top]

Food industry - recall of a pre-prepared noodle product following the discovery of metal shavings in the cups in which the products were contained. The loss involved quantification of the cost of the product recalled, recall and destruction costs as well as the consequential loss of profit that followed from the event. Loss value of approximately $3 million, including product destruction and recall costs.

Wine industry – Withdrawal of a boxed wine product from UK and European supermarkets following problems with leaking taps. The claim involved the quantification of the value of product destroyed or returned by the supermarkets themselves, the costs of recall or destruction, converting the product back into bulk form and sale on the bulk wholesale market. The matter involved consequential loss claims from all the major UK supermarket chains, the wine company itself as well as the supplier of the bag product. Loss value in excess of $10 million. This matter is referred to under the Wine Industry heading as well as the faulty cask tap claim.


Personal Injury [top]

Work in this area includes the losses suffered as a consequence of the inability to work. Professions and trades of persons that have suffered injuries included hairdressers; carpenters; farmers; information technology experts and painters.

Past income trends of the claimants have been examined in depth, trends of earnings established and projected earnings calculated. These are then compared with earnings in the post injury period to establish whether a loss of income has been suffered. Where disablement was permanent, projected income and expense levels to the date of retirement at either age 60 or 65 were calculated and the discounted value of the loss of future earnings quantified.

For motor vehicle accident victims that are seeking compensation under a third party claim, relevant legislation is taken into account. This is of particular relevance to the effects of taxation and the discount rate that is utilised to determine the value of the future loss of earnings.

Cash losses from commercial theft and burglaries [top]

Hotels
Quantification of losses arising from armed robbery or theft of cash at a number of Hotels. Involved the reconstruction of incomplete accounting records, calculation of cash levels that should have been present and comparison to actual cash on hand, if any, after the event. Claim values typically ranged between $10,000 to $50,000.

Stock Losses [top]

The following sets out some of the more significant matters that have entailed the quantification of losses of stock by commercial institutions.

Clothing Retailer
Quantification of loss at a menswear clothing retailer following an ingress of dust from a neighbouring construction site. Approximate loss value $15,000.

Jewellers
Quantification and adjustment of losses following burglaries and thefts from numerous jewellery stores. The typical procedures that are undertaken in the circumstances of these losses include the verification of the alleged losses from stock and purchase records and obtaining of quotations from other jewellers where reconstruction work has been performed on the items of jewellery.

Linen and Laundry Service
The quantification of losses suffered by a linen service where no stock records had been maintained by the claimant. Utilising past replacement history; information from sales systems and financial statements it was possible to verify the loss and assess the reasonability of assumptions made by the claimant. Approximate loss value $460,000.

Carpet Wholesaler
In the circumstances of this loss the accounting records of the carpet wholesaler were destroyed in the fire. It was possible to reconstruct the stock values from the suppliers’ shipment records. Approximate loss value $100,000.

Supermarket
Quantification of losses arising from a theft of cigarettes. Loss value below $500.

Clothing
Quantification of losses for a leather clothing retailer following theft of goods in transit from a vehicle. Approximate claim value $40,000.

Agricultural and Primary Producing sectors [top]

Mushroom Grower
Quantification and adjustment of a business interruption loss arising from the explosion of a pressure cylinder at a mushroom growing concern. Approximate consequential loss value $50,000.

Fish Processing and Canning Works
Quantification and adjustment of losses arising from an arson attack at a fish processing plant. Approximate consequential loss value $60,000.

Hydroponic Tomato Growing Operation
Quantification and adjustment of losses following damage to a hydroponic PVC clad greenhouse. Procedures included ensuring that adequate records maintained of the number of plants destroyed. This information proved to be critical in the quantification of the final loss. Approximate consequential loss value $250,000.

Chicken farm
Quantification of Business Interruption losses following the destruction of a battery chicken shed at a chicken farm. Value of consequential loss, $44,000.

Bulk grain storage and shipping facility
Quantification of losses arising from disruption to shipping activities caused by damage to a jetty by a vessel. Claim prepared against the owners of the vessel.

Fish Farm
Quantification of losses suffered by a fish farm as a consequence of the disconnection of a power supply. Calculations included the quantification of losses in the current as well as future breeding seasons. The losses were mainly of fingerlings as well as brood fish. The claim was stated at an amount of $211,000. Claim settled for $175,000.

Orchid grower
Quantification of losses of an orchid grower following the alleged contamination of a crop with a contaminated pesticide. Approximate loss value $1 million.


Building, Construction and related [top]

Plumbing supplies wholesaler and retailer
Quantification of losses following the destruction by fire of the warehouse at a wholesale plumbing supply company. The business included a small retail arm. Issues associated with the claim included quantifying effects of closure of one facility on sales at other branches of the group. The effects of substantial changes to the building and layout of the premises that prolonged the period of interruption also needed to be taken into account. Approximate consequential loss value $300,000.

Brickworks
Quantification and adjustment of business interruption losses arising from damage to processing plant at a brick manufacturer. Procedures performed included the extraction of information from the brick manufacturers accounting records following the closure of the business on its liquidation subsequent to the insured event. Negotiations with the liquidators resulted in a favourable settlement for consequential loss of $70,000.

Building Foundation Footing System Manufacturer
Quantification and adjustment of business interruption losses following the destruction of a manufacturing premises of a waffle pod manufacturer. Approximate consequential loss value $1,000,000.

Catering, Leisure and Hospitality [top]

Cafes and Restaurants
Quantification and adjustment of consequential losses at several fires and other events at cafes and restaurants. Losses have ranged from below $10,000 to $300,000.

These have included the reconstruction of incomplete accounting records.

Fires typically originate from the kitchen areas of the restaurants. Work performed includes the quantification of trends and values; negotiations with claimants and their accountants.

To ensure that the business recovers as soon as possible after reopening, media and other campaigns are often utilised to speed the turnover recoveries.

Losses arising from the closure of a restaurant following the discovery of infectious diseases by a Public Health Authority have also been dealt with.

Hotels
Quantification and adjustment of consequential losses arising primarily from fires at hotels. Numerous hotel fires have been worked on. Consequential losses have ranged from $10,000 to $3,000,000. Issues typically associated with hotel fires are the losses from gaming; bar takings; tobacco and other product sales; accommodation and the like.

Claims have also included the analysis of claims, where on closer analysis it was found that the projections that were being made were unfounded. Forensic analysis of assertions made by accountants that had prepared the claims revealed artificial inflation of figures, resulting in a considerable overstatement of claims. Reports have been prepared in conjunction with other specialists in the hospitality industry, including architects who have a thorough understanding of the drivers of market demand in the industry.

Education and training [top]

Vernon is a qualified teacher. He has taught Accounting and Business Economics at Secondary School level. He has also tutored and lectured second and third year students at University level. He is currently actively involved in training within the insurance industry.

Vernon has attended to a number of Fidelity claims at various tertiary institutions. These are detailed in the Fraud and Fidelity section of this CV.

Energy [top]

Power generation plant
Quantification of losses following the failure of a generation plant that serviced a remote mining operation and its associated township. Losses arose following the supply of allegedly contaminated lubricants to the generation plant operator.

Engineering [top]

Mechanical Design and Development Engineers
The business included the manufacture of dyes and designs, castings, manufacture of componentry, development and manufacture of special purpose machinery and the operation of plastic extrusion plant. Quantification of Loss of Profits that arose from a fire at an engineering works. The business was contract based and experienced wide fluctuations in monthly revenues. Through the use of moving average and other techniques, projected revenues over the periods of interruption were quantified. Consequential loss value, approximately $55,000.

Financial services – banking and insurance [top]

Banking and Finance
During his articles of clerkship Vernon worked on the audit of a merchant banker. He gained an understanding of the operation of the dealing rooms of the banks. Whilst working in the UK, he spent a short period of time on secondment to the Financial Services Authority, at the bank of England in Threadneedle Street, London working in the area of money laundering.

He has been involved in the quantification of losses suffered by banks and credit unions by way of fraud, theft and kite-flying. These are separately detailed under the heading Fraud and Fidelity matters.

Insurance
During his articles of clerkship in training to be a Chartered Accountant, Vernon worked on the audit of a large Life Insurer. He has also worked as Loss Adjuster and has an understanding of the workings of the insurance industry, particularly the claims aspect of the industry.

Food and beverage [top]

Salmon and Fresh Water Fish Processing Plant
Quantification and adjustment of consequential losses arising from a fire at a smoked salmon processing plant. Main tasks centred around the quantification of increased costs associated with operating the plant on an increased shift basis whilst repairs to the smoker were being undertaken.

Bottling Plant
Quantification of losses arising from disruption caused to a bottling plant by the supplier of defective glass bottles. The bottles were utilised by a major food producer. The withdrawal of the product affected a seasonal food line that had sales that peak during the summer months. Several marketing opportunities were lost as a consequence. Quantification of consequential losses from the delayed launch of a new product line was one of the numerous issues that needed to be addressed.

Forestry and timber [top]

Timber Industry / Saw milling
Quantification and adjustment of a loss arising from a malfunction of electrical equipment at a sawmill. Approximate consequential loss value $5,000.

Furniture, Fitting and joinery and frame moulding [top]

Fitting and Joinery Works
Quantification and adjustment of a business interruption loss arising from the destruction and loss of computer records at a major joinery and fitted furniture factory. Business interruption loss value $700,000.

Furniture Manufacturer
Quantification and adjustment of business interruption losses arising from a fire at a furniture manufacturer. Approximate consequential loss value $150,000.

Picture Frame Manufacturer
Quantification and adjustment of business interruption losses arising from the destruction of a factory that manufactured picture frames. Approximate consequential loss value $200,000.

Furniture factory
Quantification of losses arising from a fire at a Furniture factory near Victor Harbour. Losses involved disruption to the sales of the business whilst reconstruction was occurring. Quantified the losses associated with production inefficiencies at temporary alternative production facilities. The matter included claims for increased costs associated with transporting personnel to alternative production facilities. Consequential loss value approximately $315,000.

Manufacturing Sector [top]

Industrial mineral Manufacturing Plant
Quantification and adjustment of losses arising from damage to a raw materials supplier feed pipe to a major industrial mineral manufacturing plant. Main work centred around the critical analysis of calculations utilised to quantify the loss. A substantial overstatement of the claim was detected via a detailed analysis and verification of supporting workings. Approximate consequential loss value $900,000.

Trophy Supplier and engraving business
Quantification of losses following the destruction by fire of a trophy manufacturers premises. Loss involved the determination of additional costs associated with the establishment of the business at temporary premises. Production recommenced within a week of the fire occurring. Increased costs associated with higher input costs also determined. Approximate consequential loss $120,000.

Furniture, Fitting and joinery and frame moulding
Please see the separate section dealing with this sector for details of experience on manufacturing activities within the sector.

Food and beverage
Please see the Food and Beverage section dealing with this sector for details of experience on manufacturing activities within the sector.

Media, printing and publishing [top]

Advertising Agency
Quantification of consequential losses suffered by an advertising agency after a fire. Claims stated at an amount of $1,060,000. The main issues of debate surrounded the correct application of the clauses of the policy of insurance. Final settlement agreed at approximately $980,000.

Printing Works
Quantification and adjustment of losses arising from the flooding of the set out and processing areas of a printing works. Approximate loss value $20,000.

Print binding and finishing works
Quantification and adjustment of losses following a fire in a print binding and finishing business. Dealt with the quantification of plant and equipment losses following smoke damage to machinery as well as Business Interruption losses. Approximate loss value $100,000.

Newspaper
Quantification of business interruption losses at a Regional newspaper printing press under a machinery breakdown insurance policy. Losses arose as a consequence of a sudden and unforseen breakdown of the printing press. Approximate loss value $5,000.

Mining [top]

Gold – Open cast
Quantification of Material Damage and Consequential losses following a fire in a piece of mining machinery. Mining operations affected for several months whilst replacement equipment being sourced. Approximate loss value $4 million.

Motor Industry [top]

Motor Dealer
This matter concerned the qualification of Business Interruption losses arising from the destruction by fire of a motor vehicle dealer’s premises in a rural and regional area. The business consisted of new and used vehicle sales and vehicle servicing. Approximate consequential loss value $370,000.

Fuel Station
The claim arose from the failure of a gas bowser consequent upon a lightning strike. The claimed consequential loss value was $100,000, the adjusted value approximately $25,000. The work performed included analysis of sales volumes and value trends; traffic volume statistic information gathering; analysis of historical trends and development of models to forecast future volumes and values.

Tasks undertaken included critical analysis of Gross Profit percentage utilised in the quantification of the loss, gathering of statistics and retail information from industry bodies as well as conducting interviews with competitors and suppliers.

Crash Repairer
Quantification of losses following the disruption to a business caused by a fire in a spray booth at a crash repairer. Work performed included processing of incomplete accounting information to obtain comparable turnover figures. Figures utilised for purposes of determining trends associated with the business were utilised to quantify the loss.

Used Car Dealer
Quantification and adjustment of the losses following the disruption by vandalism to the business of a used car dealer specialising in luxury used vehicles. The adjustment of the loss included trend analysis; cover adequacy checks; valuation of interest costs associated with floor plans.

Auto Wrecker
Quantification and adjustment of losses following upon a fire at an auto wrecker.

Advice was also provided to the Insured’s accountants on the issue of ownership of stock subsequent to the fire. This information was able to be utilised in negotiations with the ATO concerning the liability for tax on the damaged stock.

This involved the determining of trends; loss value; negotiations surrounding the issue of proximate cause. Approximate consequential loss value $200,000.

Packaging Industry [top]

Liquid Packaging
Quantification of losses in the European as well as Australian operations of a liquid packaging manufacturer. The losses arose as a consequence of the diversion of output from a European manufacturing plant to service the Australian market. The matter entailed the quantification of losses suffered by the European as well as Australian operations as a consequence of this. Approximate loss value AU$6 million.

Plastics Industry [top]

Water Bottle Manufacturing Plant
Quantification of losses arising from the destruction of a stockpile of products produced in anticipation of a peak demand season. The product was stored at a location separate to the manufacturing premises. The quantification of the loss consisted mainly of identifying costs that had increased as a consequence of the increased production activity necessary to replace the destroyed stocks. Approximate consequential loss valued $300,000.

Irrigation Systems Component Manufacturer
The business manufactured irrigation systems components utilising extrusion plant and equipment. A fire destroyed the operational capability of the business. Business operations were re-established within a very short time frame. Consequential losses that were suffered as a consequence of the disruption to business activities were quantified.

Professional Services [top]

Accounting Practice
Quantification of consequential losses following the flooding of a portion of an accounting practices offices. Approximate consequential loss value $10,000.

Hair Removal Clinic
Quantification of consequential losses following the damage to a laser hair removal device. Claimed value of loss $160,000.

Accounting Practice
Quantification and adjustment of increased cost incurred by the practice following upon the theft of a computer system and backup tapes from the practices offices.

Dental practice
Consideration of circumstances surrounding the failure of an item of practice equipment and whether the Business Interruption insurance policy held by the practice responded to the loss. Recommendation issued that the policy did not respond.

Public sector agencies [top]

Vernon has worked in the public sector. His work experience in the public sector includes two years military service in the SADF and two years as a secondary school teacher in a government school.
Vernon has dealt with Fidelity claims arising from public sector agencies. These are dealt with in the Fraud and Fidelity section of this CV.

Retail Sector [top]

Formal Wear Hire Business
Quantification and adjustment of the losses following the closure of a store consequent on vehicle impact damage. Approximate consequential loss value $5,000.

Baby Clothing Store
Quantification and adjustment of losses following from a fire at a baby clothing retailer. Approximate consequential loss value $50,000.

Dry Cleaner
Quantification and adjustment of the losses consequent upon a fire at a suburban dry cleaner. Approximate consequential loss value $25,000.

Home Ware Store
Quantification and adjustment of losses consequent upon impact damage by a vehicle to the front of a retail home ware store. Approximate consequential loss value $20,000.

Gas Wares Retailer
Quantification of losses consequent upon the omission of the name of the business from the White Pages Telephone Directory. Approximate loss value $130,000. This included the quantification of the loss on the resale value of the business. This included a valuation of the business.

Supermarket
Quantification of losses consequent upon a fire in a rural town general store. Approximate consequential loss value $3,000.

Carpet Retailer
Quantification and adjustment of losses for business interruption consequent upon a fire at an adjacent premises to the retailer in question. The grounds for the claim were on the grounds of a restriction of access to the premises. The claim was rejected on the grounds that no loss of turnover could be proved.

Gift Store
Quantification and adjustment of losses consequent upon impact damage by a run away vehicle to the front of the store. Approximate consequential loss value $4,000.

Book Seller
Quantification and adjustment of losses following ingress of water arising from the overflow of a box gutter and temporary closure of the store. Approximate consequential loss value $5,000.

Bakery
Adjustment of losses following the failure of a dough mixing machine. The claim was denied.

White goods appliance retailer
Quantification of losses following an ingress of water into a retail premises from an adjacent premises. Approximate consequential loss value $2,500.

Charity store
Quantification of losses following the destruction of a charity store by fire. Fire started by arsonists setting a wheelie bin alight outside the store. Store relocated to temporary premises and to the restored premises once repairs completed. Consequential loss value approximately $60,000.

Supermarket
Quantification of losses at a supermarket and providing assistance with the re-establishment of business operations following a fire in a wing of the shopping centre in which the supermarket located. Approximate loss value, $30,000.

Service Providers [top]

Linen and Laundry Service
Quantification of increased costs associated with operating a laundry service disrupted by a fire. The services provided included the provision of advice to the laundry on how to account for the costs associated with the fire. In quantifying the loss, business models were developed to assist with the quantification of increased expenses not directly measurable but that were affected as a consequence of the fire.

Photocopier servicing and printing consumables supplier
Quantification of losses following the ingress of water to a business premises. Approximate consequential loss value $55,000.

Call Centre and Information Technology Services Company
This client is a key Software and Information Services Centre in both South Australia and the Asia Pacific region. The matter centred around the quantification of losses arising from the failure of electronic componentry within the Centre that in turn caused a network broadcast storm. Approximate consequential loss value - $40,000.

Transport Industry [top]

Vehicle Destruction
Negotiation and adjustment of a claim involving the consequential losses suffered by heavy duty commercial vehicle operator following an accident resulting in the destruction of a vehicle. The main point of argument was the termination of the business operations by the operator following the accident. Approximate consequential loss value $20,000.

Vehicle Collision
Quantification and adjustment of consequential losses following the damage to a tipper truck after a collision. The main negotiations centred around the steps taken by the claimant to mitigate the loss. The consequential loss stated at approximately $70,000 and claim finally settled at an amount of approximately $35,000.

Train collision
Quantification of consequential losses following the collision of two trains on the Nullarbor plains. Significant issues dealt with included the proximate cause of the loss as well as quantification of the loss suffered. Claim stated at $1.6 million, settled by way of arbitration for $850,000.

Railway bridge collapse
Quantification of the losses incurred by several train operators, track owners and Freight forwarders as a consequence of the collapse of a railway bridge at Corio in Victoria. The matter involved providing advice to the various parties to the action on the strengths and weaknesses of the various heads of claim.

Claim value – approximately $6 million.

Freight forwarding
Vernon worked as an accountant for a firm of freight forwarders in 1994 and 1995. he had responsibility for running an accounting department of ten staff and gained an understanding of the workings of the freight industry and its operation and terminology.

Wholesale [top]

Liquor Merchant
Investigation into declarations made by a liquor merchant on movement of stocks from suppliers to bonded warehouses for purposes of marine insurance. Investigation revealed a number of instances where goods had not been declared. Under declarations amounted to approximately 25% of the total values that should have been declared.

Wine Industry [top]

Defective corks
Claim against a manufacturer of synthetic bottle closures by a wine bottler based in Germany. Issues surrounding the claim included bottling processes and suitability of the size of the closure utilised compared to the size of the bottle bore. Delamination of the synthetic closure during extraction and contamination of the bottled wine also an issue. Approximate loss value $200,000.

Faulty Cask Tap Claim
This claim involved the quantification of consequential losses suffered by a major wine producing corporation. The losses arose as a consequence of the shipment of several container loads of cask wine to the United Kingdom. This wine had been distributed through the various distribution chains into the major supermarket chains in the United Kingdom and Europe. A product withdrawal occurred. The quantification of losses included:

• The cost of withdrawing the product from the various supermarkets.
• The cost of destroying stock at supermarket level at the time of product withdrawal.
• The quantification of transport and administration charges associated with the withdrawal that were levied by the various supermarkets.
• The costs associated with the administration, handling and distribution of salvage stock after the product withdrawal, and
• The loss of profits suffered by the various supermarkets as well as the wine corporation itself as a consequence of the withdrawal of stock.