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Embezzlement
Embezzlement:
It conjures a mental image of someone who is quiet
by nature and who may be generally overlooked.
All the while they are quietly, methodically
diverting money into their pocket.
We hear this
term used by the media because it's sexy and it
gives the impression that the person(s) involved are
not an ordinary thieves. Nothing can be further
from the truth. They are no different from
anyone other employee theft: they discover a flaw in the
system. The flaw in the security and oversight
of the process is usually discovered quite by
accident but regardless they feel that they can
exploit the flaw and not get caught. The job
of the security measures has been circumvented.
Internal theft
occurs on all levels and it begins when the employee
sees an opportunity. Sometimes it is a mistake
is discovered by the employee but no one ever
catches it. Regardless if the opportunity or
the justification presents itself first, as long as
there is a perception of low risk of detection, the
theft will happen. Detection comes from the
most benign sources and unless there are checks and
balances of anything to do with money, then the
opportunity simply grows.
Opportunity is
reduced when there is authorization required, a
process is regularly reviewed or audited, or the
employee is aware that there are automated processes
in place that detect unusual behavior of certain
financial activities.
Where employees
generally find systemic weakness is when the usual
second set of eyes is no longer paying attention.
They have gained a position of trust, they have
circumvented the normal processes or they have truly
found a vulnerable hole in the accepted processes.
They types of employee theft that occur are beyond
comprehensive listing but the ways in which they
come about are as described above.
Call us to
discuss how you can strengthen your internal
controls to reduce your exposure to employee theft.
Also visit our pages on
employee theft for more information. Here
are some articles about employee theft that are from
industries and organizations across the United
States.
Appeal denied in
embezzlement case
Traverse City Record Eagle - Traverse City, MI
Karla Sue Lockman, 37, of Boyne City, was convicted
in 2006 of embezzling more than $859000 from her
employer, Northern Preferred Title Co. in Charlevoix
County.
UPS worker gets 7
years for embezzlement
Chicago Tribune
A former United Parcel Service supervisor who stole
more than $800,000 from the firm was sentenced
Thursday to 7 years in prison.
Ex-JSU employee pleads guilty to stealing school
funds
Jackson Clarion Ledger - Jackson,MS,
A former purchasing agent at Jackson State
University accused of stealing $86,388 from the
school has pleaded guilty to embezzlement. ...
Woman faces embezzlement charges
Jefferson Post - West Jefferson, NC
The total alleged to have been embezzled, according
to the warrants, was $237,758.68. Poplar Grove Farms
is a local Christmas tree grower. ...
Greenwood man gets jail term for embezzlement
Indianapolis Business Journal - Indianapolis, IN
William Crouse Jr., 39, of Greenwood , has been
sentenced to 57 months in jail after he pleaded
guilty to embezzling health care premiums and
laundering ...
Ex-Commissary Chief Stole
$128k
A former director of the
commissary at Davis-Monthan Air Force Base, Ariz.,
has pleaded guilty to stealing $128,000 from the
store to gamble and buy items for himself. James R.
Leahey, 69, admitted that he stole the money when he
directed the commissary from 1997 to 2004....
Leitchfield resident faces federal charges for
embezzlement
Grayson County News Gazette - Leitchfield,KY
Kimberly Stella Stallings, age 46, was charged with
possession and passing checks containing counterfeit
signatures, in the amount of $84,636. ...
Ex-Natchez school board member sentenced
Biloxi Sun Herald - MS, USA
AP James Coleman, a former Natchez-Adams School
Board member, has been sentenced to 20 years for two
counts of embezzlement. Circuit Judge Forrest "Al"
...
Ex-secretary at Coeburn Middle to be arraigned on
embezzlement charges
Kingsport Times News - Kingsport,TN,USA
Patricia Bryant, 44, 12858 River Lane, Coeburn, was
indicted this week by a Wise County grand jury on
eight counts of embezzlement. ...
OSA Director Nealley fired; dean alleges she
embezzled $300000
Tufts
Daily, MA -
Director of Student Activities Jodie
Nealley was fired on Friday because she allegedly
embezzled approximately $300000 from the
university. ...
Secret Addiction Led To Embezzlement
WOWT, NE -
Tamara
Muhlberg was a trusted employee with a secret
addiction that caused her to embezzle $340000 over
two years. She's sharing her story in hopes others
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