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

Tagged with: , , , , , , , ,
15 comments on “Embezzlement Explanation (or rationalization) of the Day…
  1. Alok Dilon says:

    This is a great post

  2. This really answered my problem, thank you!

  3. Keep up the good work!

  4. Blogging like that is just a great thing. Keep it up.

  5. XBOX says:

    Mhm, nice layout :).

  6. its fantastic as your other posts : D, thankyou for posting .

  7. Definitely, what a magnificent site and illuminating posts, I definitely will bookmark your blog.Have an awsome day!

  8. Thank you for sharing excellent informations. Your website is so cool. I’m impressed by the details that you’ve on this blog. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found simply the information I already searched all over the place and simply couldn’t come across. What an ideal web site.

  9. Zeek Rewards says:

    Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you can do with some pics to drive the message home a bit, but other than that, this is fantastic blog. An excellent read. I will certainly be back.

  10. bola preta says:

    Great blog! I am loving it!! Will come back again. I am bookmarking your feeds also

  11. Harold Zuver says:

    I conceive other website owners should take this website as an model, very clean and great user genial design.

  12. Cool work. Keep it comin’… 🙂

  13. Heys, heya, thanks for the great article dude!

  14. I very delighted to find this internet site on bing, just what I was searching for : D as well saved to bookmarks .

2 Pings/Trackbacks for "Embezzlement Explanation (or rationalization) of the Day…"
  1. my thoughts…

    Thank you for another wonderful article. Where else could anyone get that type of information in such an ideal way of writing? I’ve a presentation next week, and I am on the look for such info….

  2. my thoughts…

    whoah this blog is excellent i love reading your articles. Keep up the great work! You know, lots of people are looking around for this info, you could aid them greatly….

We have the resources to get to the bottom of your most complex financial matters. Our team of forensic accountants brings a varied background of experience to each matter.

Heading the team is Stephen A. Pedneault. A CPA and forensic accountant, Steve is also a Certified Fraud Examiner (CFE), and is a Certified in Financial Forensics (CFF). He brings over thirty years of accounting and fraud investigation experience to the firm.