A federal grand jury indicted a former office assistant at a family-owned construction company in South Lake Tahoe on charges of wire fraud, bank fraud, and aggravated identity theft. Between November 2019 and May 2023, the former construction company employee allegedly embezzled over $1.4 million from her employer. She is accused of disguising more than $700,000 in fraudulent transfers as payments to vendors, using fake profiles and company names resembling her initials. Additionally, she used the company’s credit card for personal expenses and paid off her own credit card balances with company funds. The stolen money was used to purchase property, luxury cars, ATVs, and a horse.
The case is being prosecuted by Assistant U.S. Attorneys Elliot C. Wong and Whitnee Goins, following an investigation by the FBI and the South Lake Tahoe Police Department. If convicted, the former office assistant faces severe penalties, including up to 20 years in prison and a $250,000 fine for each count of wire fraud, 30 years in prison and a $1 million fine for each count of bank fraud, and a mandatory two-year sentence for aggravated identity theft.
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Prevent This From Happening TO YOU!
To mitigate the risk of internal fraud, especially within the accounting department, companies can adopt several best practices. Some of these include:
- Implement strong internal controls: establish clear policies and procedures for financial transactions and ensure they are followed consistently. This includes segregation of duties, where different individuals are responsible for different aspects of financial activities, to prevent any single person from having too much control or opportunity for fraud.
- Regularly review financial records: conduct periodic internal audits and review of financial records to identify any irregularities or discrepancies. This can help prevent fraudulent activities early on and prevent further losses.
- Conduct periodic external audits: engage external auditors to conduct independent reviews of the organization’s financial records and internal controls. This can provide an objective assessment of the effectiveness of internal controls and identify areas for improvement.
- Monitor and analyze financial data: utilize data analytics tools to monitor financial transactions and identify any unusual patterns or anomalies that may indicate fraudulent activities.
Source: journalofaccountancy.com, smallbusiness.chron.com
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