Are We Seeing The Tip Of The Iceberg?

Another staggering case – $65 Million by one individual in embezzled funds through kickbacks.

California’s Fry’s Electronics VP Arrested for Embezzling over $65M

This case seems really interesting. The kickback arrangement doesn’t seem to have been detected through anti-fraud measures, internal controls, employee tips, external audit procedures, or any other common means. Rather, it appears the only reason this case came to light is due to the complacency of the perpetrator leaving behind spreadsheets detailing his scheme.

These cases have nothing to do with the current state of the economy or the downturn in both the real estate and financial markets. The cases I read about every day that have been detected over the past six months are cases that have been happening for some time. None of the cases I have been reading in the media have been newer schemes started by individuals in the past few months due to the downturns. This only goes to show that greed and entitlement continue to remain leading causes for stealing significant amounts of money from employers.

$65 million by one trusted individual totally unknown to the victim organization? Just how many of these cases exist in today’s business and corporate culture? What about all the undetected embezzling that has been and continues to be perpetrated where no spreadsheets are being maintained to provide a means for detection?

How and when will those cases be discovered, and what impact will the growing frequency of multi-million dollar thefts have on the victim organizations and consumers at large?

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Fry’s Electronics VP Arrested for Embezzling over $65M