What happens when you lack internal controls…
Here are four stories of employee theft, fraud, and embezzlement that illustrate how a lack of internal controls results in loss.
A former investment banker has admitted stealing almost $NZ18 million from ASB customers in New Zealand's largest employee theft.
“It was the Friday of Labor Day weekend. I suddenly don’t have a secretary. I’m thinking of everything I have [to review]: what’s gone in and out of the trust account, the accounts receivables. Plus I’ve got client work to do, and a brief was due the following week,” Olson recalled.
All told, his assistant of about 18 months had stolen approximately $20,000. It took Olson’s newly-retired wife about 90 days, working all day long, to piece together their losses. The now-former assistant had covered her tracks very well.
Much of the rest, about $900,000, was because of employee theft, unethical behaviour and wasted resources.
In one incident, a worker reversed two bank deposits and pocketed about $273,000.
Another employee stole $63,000 in petty cash and money orders. The employee was disciplined and no longer works for the city. Police are investigating.
A 25-year-old Middletown man surrendered to state police today to face charges he embezzled funds for two years from his employer.
Andrew Chambers, of East Dickerson Lane, was charged with theft and falsifying business records -- both felony offenses.
Source: http://www.delawareonline.com/article/20100202/NEWS/100202033/Manager+charged+with+embezzlement