An Alpharetta Georgia man was sentenced to prison for swindling four different employers out of nearly $5M. During a four year span, the former account executive deceived employers by acquiring pay for non-existent contracts that he deceitfully claimed he acquired.
The former executive established bogus email accounts and identities and then forged false documents, sent emails to himself and co-workers purportedly from those officials, in an attempt to mask his scam. It was reported that he collected salaries ranging from $115,000 to $150,000 per year, plus commissions, loans, travel reimbursements and other benefits from his employers.
The former executive also had co-conspirators pose as executives from his “non-existent” companies. Ultimately, all employers became skeptical, unveiled the fraud and his employment was terminated.
Prevent This From Happening to YOU!
Spotting fraud sooner rather than later helps reduce its associated costs. Therefore, employers should be familiar with as many red flags as possible, and monitor accounts, transactions and systems closely. More importantly, employers should get to know their employees! A few warning signs of employee fraud can be:
- employee’s lifestyle seems outside of his or her means.
- employee refuses to take vacation or sick leave. Or if an employee always works while on vacation (this can be for fear of getting caught by another employee or manager)
- behavioral changes such as unusual irritability or work habit changes.
- a reluctance to provide information you are requesting.
- an employee who lacks segregated duties – it’s always a good idea to have more than one person in the loop on big decisions, especially when it involves finances.
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.
Sincerely,
Michael Beranek
Berkley Crime
Experts focused on your protection.
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