04Aug

Former Business Manager Of Local School District Pled Guilty To Embezzling $1.6M

Too Much Power With No Checks and Balances

Former Business Manager pled guilty to the charge of mail fraud in connection with the embezzlement of $1.6M from her local school district.

Working her way up the ranks over the past 20 years in her local school district, she developed the trust of so many. During this time the former business manager was falsifying the school districts records to hide her own crimes. At one point, she admitted that she concealed her embezzlement by inflating employee wages which caused those individuals to pay additional taxes to the IRS.

After the school board authorized a special audit, the case was investigated by the Federal Bureau of Investigation. It has been reported that the district did in fact have insurance coverage and a claim has been filed.

Read the full story here.

Too Much Power With No Checks and Balances

It is important to remember to separate duties involving the custody of assets, authorization of transactions as well as the recording of related transactions. No matter how long an employee has worked for you or how much you trust him/her, no single employee should be in a position to be able to commit and then conceal fraudulent activities.

Have management review and perform periodic account reconciliations and bank statements as well as employees’ expense reimbursements.

Remind employees’ to always review their paystubs and verify their W-2s when they receive them.

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