Posts Tagged ‘employee theft’

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18
Jan/121

Embezzlement Explanation (or rationalization) of the Day…

$10.4 million embezzlement, $10,400,000, stolen over a little more than three short years, to support a “significant gambling problem?”

First, how much investments could a firm manage or maintain to not miss $10.4 million dollars?  I am left wondering how this amount was not missed for over three years, and how controls that I would expect implemented by any investment firm did not prevent or detect this level of theft for such a long period.  Cases like this one makes me wonder just how many of these thefts are occurring today but have yet to be discovered, much like when I wrote something similar a year ago when this particular case was on-going and yet to be discovered.  Is also makes me wonder how many individuals who gamble regularly support their hobby or addiction with stolen funds.

Former company official admits embezzling $10.4M from northern NJ investment firm

NEWARK, N.J. — Federal prosecutors say a New Jersey man has admitted embezzling more than $10.4 million from the investment management firm where he served as chief financial officer.

Newmark’s lawyer, Michael B. Himmel, said his client has a “significant” gambling problem.

Thirty-nine-year-old David Newmark of Montville surrendered to authorities Wednesday and pleaded guilty to wire fraud and tax evasion charges. He faces up to 25 years in prison when he’s sentenced April 24 and also will have to make full restitution. Newmark stole the money from Short Hills-based Columbus Hill Capital Management. Prosecutors say he created a phony account to collect fraudulent deposits between February 2008 and March 2011 and diverted the funds to bank accounts he controlled.  Newmark’s lawyer, Michael B. Himmel, said his client has a “significant” gambling problem.

Click to read the article at therepublic.com

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17
Jan/121

And incidents of theft and embezzlement continue, and continue…

Day after day I receive Google notifications containing news articles relating to embezzlement.  On any given day, somewhere between twelve and twenty different notifications are delivered to my in-box, some with only one news article or post, while others contain several different cases.  It amazes me just how much theft is occurring, and when you take into consideration only one in nine cases ever hits the press, the incidence of embezzlement is staggering.

Another pattern I have been tracking is that no contexts seem to be immune.  Individuals with access and opportunity seem to be stealing everywhere possible.  I’m not saying everyone is stealing, because that is certainly not the case.  But I am saying a significant risk exists for theft or embezzlement within every business, entity, government agency, program, club, group, and every other type of organization that maintains funds, regardless of the nature, size and context of each potential victim organization.

I truly believe employee behavior is a leading indicator, often detected long before evidence of the actual diversion of funds has materialized.  Living beyond ones means seems to come up in many of the cases.  Know your employees, and for anyone who is a member of any social club, sports program or any other member organization, know who handles your finances and what controls are in place to safeguard your funds.

Below is a small sampling of Google Alerts received today alone:

Woman jailed for embezzling youth soccer funds (over $200,000)

http://www.vancouversun.com/business/Woman+jailed+embezzling+youth+soccer+funds/6006470/story.html

A local judge accused of embezzling court funds and other misdeeds could be removed from the bench

http://www.wxyz.com/dpp/news/a-local-judge-accused-of-embezzling-court-funds-and-other-misdeeds-must-answer-for-her-actions

Sentencing for Ira town clerk who admitted embezzling

http://www.wcax.com/story/16536416/sentencing-for-vt-clerk-who-admitted-embezzling

Former Tenderloin Housing Clinic Employee Sentenced For Embezzlement

http://sfappeal.com/news/2012/01/former-tenderloin-housing-clinic-employee-sentenced-for-embezzlement.php

A Kent County minister accused of embezzlement is due in court today.

http://www.wwmt.com/news/embezzlement-1400637-accused-minister.html

Former Shelby Schools superintendent charged with embezzlement


http://www.ludingtondailynews.com/news/63161-former-shelby-schools-superintendent-charged-with-embezzlement

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10
Jan/122

Interesting Blog: Physician Embezzlement Victim Educates Other Physicians

In my never ending search for the latest trends and information on embezzlement and financial crimes, I frequently find myself discovering unexpected fraud related “treasures”.  Last night was no exception.  I was preparing for an upcoming appearance at an medical conference.  The theme – preventing and detecting employee theft and embezzlement.

A simple Google News search using key words “embezzlement ” and “medical” led me to many recent articles relating to individuals who crossed the line and were caught stealing from their practices.  The bookkeeper for one practice embezzled over $2 million, a practice manager embezzled nearly a half million, and several others whose thefts reached large six-figure amounts.

Last night’s “treasure” find – http://www.stealfromdoc.com/.

Although I am online most every night, as I have been my entire career, I had never landed on this site.  The site is sponsored and maintained by a practicing physician, Dr. Don Elton, who was victimized through an employee embezzlement.   Per Dr. Elton’s site: “I am a Pulmonary and Critical Care physician practicing in South Carolina. Like most physicians, I have been a victim of employee theft. None of us received any training in accounting or prevention and detection of employee embezzlement in school so I sought to write a concise book to fill in the knowledge gaps most physicians have in this very important area.”

Dr. Elton’s site is dedicated to articles, stories and information relating to fraud and embezzlement directed to the medical community.  In my experience, medical enviroments continue to be the number one victimized organization when it comes to employees stealing, and more resources like this site are needed to help change that statistic.

Beyond a physician, financial crime victim and blogger, Dr. Elton is also a published author.  Dr. Elton’s book, “How to Steal from a Medical Practice“,  targets assisting fellow practitioners, helping them minimize their risk of becoming a victim to employee theft and embezzlement.

If you are a medical provider who owns, manages or otherwise are responsible for the financial aspects of your practice, regardless of size, specialty or modality, you should bookmark Dr. Elton’s blog, track back regularly, and order a copy of his book.  He provides great advice, doctor to doctor, to minimize your chances of becoming a victim at the hands of one of your employees.

http://www.stealfromdoc.com/

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