Negligence, Fraud, Theft and Criminal Investigations

Unless systems, processes and procedures are introduced to prevent the practice, negligence, theft and fraudulent activity can occur at all dealerships and motor vehicle related businesses, particularly in relation to parts.

During the course of audits, AAL have identified thousands of pounds worth of parts, which had not been returned to the manufacturer. The outstanding amounts were being disguised as warranty returns, when in fact they were the result of gross negligence by the parts department.

On one occasion AAL, when auditing a technician/nominated tester’s activities, identified the theft of £90,000 worth of parts. The technicians had been allowed to work late to complete outstanding urgent work. Staff were left unsupervised and found a method to gain access to the parts department. When they ceased work, they left the roller shutters unsecured, only to return later to complete the theft.

On another occasion, a forecourt attendant made regular submissions of falsified lottery wins to the accounts department, who failed to audit and reconcile the claims. In total, a £43,000 loss was calculated, the member of staff was dismissed and a private prosecution instigated.  By the simple expedient of looking at shift patterns and correlating that to the lottery claims, AAL, produced evidence for the dealership to recover its losses with the option to proceed in the County Court, where the quantum of proof is ,“on the balance of probabilities” rather than “beyond reasonable doubt,” the criteria used in the criminal courts.

If you suspect gross negligence, suspect fraud or theft, you should contact AAL for advice before you engage with those you feel may be responsible.


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