Former Lubricol Corp Employee Charged in $10M Fraud Scheme

A 65 year old former employee of Lubrizol Corporation was charged with a $10M fraud scheme that went undetected for almost 20 years. The 10-count indictment for wire fraud was returned by the federal grand jury under seal on September 17, 2019.

Based in Deer Park, Lubrizol is a provider of specialty chemicals for transportation, industrial and consumer markets.

The 65 year old former employee allegedly defrauded his employer of $9,256,713 between April 1998 and November 2017 by submitting fraudulent invoices from two companies he owns for services that were never rendered.

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Prevent This From Happening to YOU!

The average large company processes hundreds or even thousands of invoices every month. The sheer volume of invoices makes it impossible to closely examine each one that comes through your desk. So how can your business prevent falling prey to invoice fraud schemes? Below are a few tips to help prevent this from happening to you:

• Create a tone at the top – establish a code of conduct for your employees and provide fraud awareness training to build a culture of awareness across your organization
• Be sure to review the vendor lists semi-annually
• Approval for invoices should be performed by multiple employees
• All vendors should submit a W-9
• Analyze vendor purchases for verification
• Provide an anonymous fraud hotline to employees to report suspicious activity

Remember, prevention and detection are crucial to reducing employee fraud. If you don’t already have a plan in place, we recommend you do it now!

Resource: Crowe Horwath

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Sincerely,
Michael Beranek
Berkley Crime

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National Practice Leader Michael Beranek (501) 707-6548 [email protected]	Mid-West Regional Manager Thomas Trieloff (312) 705-1132 [email protected]
East Regional Manager Matt McNamara (212) 497-3707 [email protected]	Amanda VanCauwenberge (312) 730-1101 [email protected]
Patricia Logan (212) 497-3708 [email protected]	Everton Barrington, FLMI (860) 466-7376 [email protected]
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Alexander Doerflein (212) 497-3724 [email protected]	Catherine Vilandre (860) 466-7375 [email protected]
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