Crime watch

A unique organisation

Signum Services Ltd is the investigative arm of Thomas Miller & Co. Ltd. and conducts investigations on behalf of the Members of the UK P&I Club, the TT Club and ITIC. Its origins can be traced to 1953 when food was still being rationed in the UK after World War II. Thieves targeted food supplies being discharged at London's docks and thefts of these cargoes became a major problem for some of the P&I Club's Members. An ex-police officer was employed to counter these activities. Now Signum has grown into a team of four investigators who travel the world enquiring into every type of criminal activity which affects Club Members.

Led by a former detective superintendent, the staff is made up of ex-senior detectives from the Criminal Investigation Department at New Scotland Yard. The team has over 120 years experience in solving crime. Its members have served on squads specialised in detecting suspicious deaths, organised crime, armed robbery, hijacking, kidnapping, fraud, and transport crime.

Their qualifications enable them to inquire into any incident which a Member may suspect harbours a criminal aspect. They have been called upon to investigate murder, arson, many forms of fraud, rape, stowaway-related problems, criminal damage, container and general cargo crime, port based organised crime and every conceivable type of theft. It is a unique body in the world of marine loss investigation.

The investigative arm of Millers

The Signum investigator stepped off the plane into the heat of the afternoon sun. He was greeted by a local police officer who was in charge of a major enquiry. They quickly established a rapport; they had much in common, they were professional detectives and there was a lot to talk about.

As they left the airport they discussed the reason for the investigator's visit. He wanted to know how a seaman had died. Had he pulled the trigger himself or had someone else fired the fatal shots? It was unusual, but not unknown, for a person to use more than one bullet to end his own life.

In an upstairs room at the police station the discussions continued. They were joined by the pathologist and the chief of the scenes of crimes department. For many hours and over much coffee together they went over everything that was known about the seaman's death.

They analysed the statements made by members of the ship's crew; no one had seen anyone leave the cabin after the shots were heard. The pathologist and the scenes of crimes officer analysed the position of the man's body as it had been found; underneath the body was the automatic pistol. The precise location of the empty shells and the pathway of the fatal bullet into his heart were described. The investigator questioned every point and challenged every assertion to get at the truth.

Over the following days the Signum investigator studied the photographs of the scene, the exhibits and other available evidence until eventually he too was satisfied that the deceased had taken his own life. His judgement was later confirmed by the Coroner's Court. The man had committed suicide.

Bar code blues

Shippers of two containers stuffed with cigarettes arranged for surveyors to ensure that the consignment should bear particular bar coding. When the cigarettes were delivered to the consignee the bar code suggested lower grade tobacco than that ordered.

The Signum investigation revealed that an intermediary was arranging shipments in the knowledge that the cigarettes actually supplied by him were of a lower quality than those ordered. He nevertheless invoiced his client based on the value of the superior product. Responsibility for the fraud was shown to be that of the intermediary.

A typical investigation

The initial request for help usually comes to Signum from one of the Clubs' executives. The problem is identified and relevant documents are studied. A high value container may have gone missing somewhere along its six or seven thousand mile journey across the world. Preliminary enquiries may be made through the Club's network of correspondents or with the Member's local agent. The investigator may contact law enforcement colleagues from one of the international professional bodies of which he is a member. All this gives a fair indication of where the problem lies before he boards a plane.

Arrangements will be made to interview everyone involved in the handling or movement of the cargo in the place where it is believed to have gone missing. Local agents or correspondents provide office facilities and the investigator will work closely with them perhaps for the next week or two. Firm friendships are established, some of which endure for years. He may have to work with the state, town or perhaps the local port police or customs and excise officers.

The investigator must be sensitive to the interests of the Member. For example, if an investigation at a port involves common problems experienced by different Members, each Member is treated as a separate client and the confidentiality of their interests is respected accordingly.

With hard work and some luck the investigator will return home having solved the problem. On his return he will prepare a detailed report for the executive who instructed him. The cause of the problems will be explained to the Member and he will be advised of preventative action which should be taken to avoid recurrence.

Rags to riches

A shipper arranged transport for two containers stuffed with cigarettes. At the port of destination they were stored, unopened, at a terminal for several weeks. In due course, the consignee requested that they be returned to the shipper. When the containers arrived back at the port of dispatch only one contained cigarettes. The other contained rags and old clothing. The loss was valued at US$ 250,000. The Signum investigation showed that terminal staff had switched the numbers of two containers, one containing the cigarettes and the other containing the rags, whilst stored at the port of destination. The rags container was given the identity of one of the cigarette units which received the identity of the rags container. The consignee of the rags container then took delivery of the cigarettes exactly as the thieves had planned.

It also established beyond doubt that the carrier, when instructed to return the containers to the original shipper, shipped one container of cigarettes and one of rags. It was shown that the loss was the responsibility of the terminal and no claim was ever submitted against the carrier.

Under seal

Signum regularly encounters cases where consignees find a container's seal intact but all or part of its contents missing. One case involved shipments of rubber blocks to Europe and Australia. The investigation showed that containers left the shipper's premises and arrived at the terminal in the same condition. Good procedures at the terminal, checking and recording details of seals and times of arrival, made it easy to establish that the thefts took place at the shipper's premises before the containers were sealed.

In another case sportswear was disappearing from containers arriving in the United States. The seals were correct and intact and it was assumed that the goods were being removed before the seals were attached to the containers. The Signum investigation discovered that drivers were being bribed to take the containers to a warehouse controlled by the thieves instead of directly to the port of shipment.

Whilst there, bolts were removed from the doors of the containers allowing access to the container from which part of the goods were removed. The remainder of the consignment was redistributed in the containers, the doors and bolts restored and the container resumed its journey arriving at the port with the original seal intact.

It is essential to check containers promptly and thoroughly where original seals appear intact but part or all of the contents have been removed. It is particularly important to examine carefully the bolts on door hinges and seal brackets to identify any signs of interference. It can be difficult, costly and time consuming to try at a later stage to pinpoint where and when the goods were removed.

Paper losses

Much fraud is conducted with the help of `insiders'. These people may provide photocopies of documents, such as bills of lading, which are essential to enable fraudsters to commit an offence. They may also supply information which can be entered on forged documents to secure the release of cargo.

When a driver arrived at a terminal to collect a high-value container loaded with spirits he produced a delivery note which bore the correct bill of lading number and the correct customs number. The terminal's computer identified the detailed information as correct and generated a release document. The driver was then able to collect the container and obtain the necessary endorsements for its release.

In this case the terminal staff failed to cross check information contained on the release document against that contained on the delivery note tendered by the driver. Had it been checked it would have revealed sufficient discrepancies between the two documents to raise suspicions about the validity of the transaction.

Thefts such as this are usually facilitated by poor procedures or failure to observe sound procedures, where they exist.

A driver called at a terminal to collect a high value container. Although the documents in his possession were forged, they appeared to be genuine in every respect. Nevertheless, he would have failed to get away with the container if the staff who released it had observed some of their own basic security procedures. The container should only have been handed over to a driver whose details had been faxed to the terminal the previous night by the consignee's agent. Reference to the fax would have also shown particulars of the trucking company employed and the registration number of the tractor unit. In the event no fax was received by the terminal but the container was still released to the driver of a bogus trucking company without further inquiry.

Cool customer

Signum undertook investigations into thefts of refrigerated containers in Hong Kong. In a six-month period between late December 1997 and June 1998 a fraudster, posing as a shipper, approached a number of forwarding agents and shipping lines requesting reefer containers for export cargoes. Signum's findings in this matter were circulated to Members by fax or e-mail as a Loss Prevention Bulletin: LP Bulletin 61 - 8/98 Reefer container thefts - Hong Kong, available on this website.

Get Signum

Signum often carries out security surveys of terminals and warehouses for Members. The investigators' long experience of dealing with criminals, tells them why, how and where premises are vulnerable. Upon request an investigator will attend to examine the physical security of premises and, equally importantly, to assess the effectiveness of the security procedures adopted in that location.

Most crime could be prevented by:

• thoroughly vetting staff
• good physical protection of premises, and
• good security procedures which are properly enforced.

Signum's greatest successes have been in the detection and prevention of crime against Members. A telephone call to any of the Club's offices will ensure an immediate, confidential and professional investigation which could save much time and money.

Signum Services Limited
Telephone: +44 020 7283 5616
Fax: +44 020 7626 8379