Charges Brought on Mail/Wire Fraud, Money Laundering and Tax Evasion
Charges have been brought against a former employee of a large funeral products company for the largest embezzlement in Western Pennsylvania history. The investigation revealed that more than $9.5 million had been stolen over a 15 year period. The perpetrator has been cooperating with investigators and is expected to plead guilty at a March court hearing.
In order to help pay restitution, the former treasury specialist has forfeited what amounts to a 65 page listing of properties and items purchased with the proceeds of the stolen money. It includes multiple houses, a yacht, cars, jewelry, power tools, and many other items.
To read the full story and find a detailed list of the items, click here.
How Could Something Like This Go on for 15 Years?
The company in question has not revealed how this type of crime went undetected for such a long period. However, at a high level, it seems the right type of oversight and controls were not in place and/or not followed, if they were in place.
Although we all want to, and should, trust our employees, it is our obligation as managers to verify that duties are being carried out faithfully and legally. This requires that stringent policies and procedures be established and implemented to ensure business thrives and grows. These should include:
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Regular audits by experienced third parties
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Periodic and random record reconciliation of invoices and payments
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Separation of accounting duties
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Enforcement of vacation time and switching of accounting duties among employees
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Regular review by upper management of policy enforcement
Before a Loss Occurs…
Make sure your clients have crime insurance. Trying to recover stolen funds from a perpetrator offers no guarantee of success. Take the steps to ensure that your clients are covered and call one of the Berkley Crime team members listed below.
Call Berkley Crime today, we’ll help you and your clients get the right coverage, quickly.
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National Practice Leader |
Mid-West Regional Mgr. |
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East Regional Manager |
Amanda VanCauwenberge |
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Patricia Logan |
Thomas Trieloff |
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Cheryl Yorio |
Everton Barrington, FLMI |
| Alexander Doerflein (212) 497-3724 [email protected] |
West Regional Manager |
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Adam Pardi
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Steve Nguyen (925) 472-8233 [email protected] |
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P: 844.44.CRIME
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