Case #1: Multiple Missteps Cost This Government Agency $2.4 Million

The Conviction:
In 2007, an accounting clerk previously employed for 12 years at a county government agency appeared in criminal court and was sentenced to 10 years in prison for stealing $2.4 million.

The Alleged Scheme:
This trusted employee was given the authority to prepare and issue government agency checks without proper internal safeguards and reasonable management oversight. Between January 2002 and September 2006, this employee wrote 137 county agency checks valued at $2.4 million and deposited them into her personal account.

The Scheme’s Downfall:
This fraud scheme was actually uncovered—strictly by accident, as result of a credit union employee calling that county agency’s Vice President of Finance and asking a question about some government checks being deposited in a personal checking account. Shortly afterward it was confirmed that the account in question belonged to one of that county agency’s employees. At this point, government auditors were called-in and an investigative audit was launched.

Lessons Learned:
This major theft could have easily been prevented:

Be informed – learn from the experiences of others. Get involved – and YOU will be prepared.

Read more in Business Fraud: From Trust To Betrayal