United States Attorney Roger B. Handberg announces that a former financial employee for the Jacksonville Jaguars has waived indictment by a grand jury and pleaded guilty to wire fraud and engaging in an illegal monetary transaction after allegedly stealing over $22M from the NFL franchise.
The former Jaguars employee used his role as the sole administrator for the franchise’s virtual credit card (VCC) program to make hundreds of personal purchases that included a condominium in Ponte Vedra Beach, FL, a new Tesla sedan, a Nissan pickup truck, and sporting tickets. He also used the money to fund online gambling.
His position as the sole administrator overseeing the VCC program allowed the former Jaguars employee to cover up and continue to operate his scheme for several years. He allegedly created accounting files that contained numerous false and fraudulent entries and emailed them to accounting each month to hide his fraudulent credit card transactions. He faces a maximum penalty of 30 years in federal prison.
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Prevent This From Happening TO YOU!
There are best practices that companies can employ which can help reduce the risk of internal fraud, particularly in the accounting department. A few are listed below:
- 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 to 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.
Make Sure Your Clients Take a Proactive Approach To Protecting Their Business Should a Loss Occur
Make sure your clients have crime insurance. Take the steps to ensure that your clients are covered by calling one of the Berkley Crime team members listed below.