10Jan

Man Spends $1 Mil. of Embezzled Funds on Smartphone Game

Watch Those Company Credit Cards!

The former controller of a construction equipment company pleaded guilty to money laundering and wire fraud after embezzling $4.8 million from his employer. He used a company credit card to purchase cars, country club memberships, furniture, surgery and sports tickets. But most interesting, he used the largest single portion of the stolen funds, about $1 million, to play the addictive smartphone game, “Game of War.”

Using falsified records and other steps to hide the charges on the company credit card, he was able to keep the embezzlement scheme undetected for almost 7 years.

Read the full story here.

Monitor Company Credit Card Usage and Charges Closely

Embezzlers often go to great lengths to hide credit card abuse and can get away with it for long time if employers do not have the correct processes, procedures and oversight in place. To help minimize and prevent fraud, the following procedures should be considered for inclusion in any expense account or company credit card reconciliation process: 

  • Segregate accounting duties so that different people or groups are dealing with expense receipt and payment

  • Conduct regular outside independent audits 

  • Institute periodic spot audits on expense reports requiring manual review of receipts 

  • Mandate review by a second reviewer when a particular card exceeds a preset number or dollar amount of charges in a single month

When Your Clients Do Experience a Crime Related Loss, Make Sure They’re Covered

Call Berkley Crime today, we’ll help you and your clients get the right coverage, quickly.

——————————————————————-

National Practice Leader
Sean Missal
(860) 466-7377
smissal@berkleycrime.com

Mid-West Regional Mgr.
Michael Beranek
(501) 707-6548
mberanek@berkleycrime.com

East Regional Manager
Matt McNamara 
(212) 497-3707
mmcnamara@berkleycrime.com

Amanda VanCauwenberge 
(312) 730-1101
avancauwenberge@berkleycrime.com

Patricia Logan 
(212) 497-3708
plogan@berkleycrime.com

Thomas Trieloff
(312) 705-1132
ttrieloff@berkleycrime.com

Cheryl Yorio 
(860) 466-7379
cyorio@berkleycrime.com

 

Everton Barrington, FLMI
(860) 466-7376
ebarrington@berkleycrime.com

Alexander Doerflein 
(212) 497-3724
adoerflein@berkleycrime.com

West Regional Manager
Jennifer Maggi 
(213) 417-5467
jmaggi@berkleycrime.com

Adam Pardi 
(212) 497-3704
apardi@berkleycrime.com

 

Steve Nguyen 
(925) 472-8233
snguyen@berkleycrime.co

Experts focused on your protection.
We deliver.

P: 844.44.CRIME
info@berkleycrime.com
www.berkleycrime.com

Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

For additional information concerning W.R. Berkley Corporation’s insurance company subsidiaries, please visit: http://wrbc.info/Licensing/License.htm