Fraud

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A place for serious discussion on any non-religious topic

Fraud

Postby Pondero » November 5th, 2014, 3:11 pm

A Yorkshire Management Accountant was apparently unhappy with the £10,000 annual raise she got in 2009 - a year after she joined the high-end shoe firm Moda. That's when she began writing company cheques totalling £200,000 over two years,using the money to pay for her extravagant nuptials which included not one, but two, wedding dresses and a ring bearing owl, as well as a share in a racehorse for her husband. The thefts, which Ballance claimed to be a "secret bonus system" set up by her employer, were not discovered until she left the company in 2011 after being refused an additional raise. She was found guilty of three offences of theft and sentenced to three-and-a-half years in jail..(Fraud scams and shams.CPA magazine, November 2014.)
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Fraud

Postby Serenjen » November 5th, 2014, 9:54 pm

This reminds me of when I worked in finance. There was a review of processes and changes were made. The changes then meant I had permission to redirect money and my best friend permission to set up new accounts. We joked that my friend could set up a bank account and I could redirect £13 million of licence fees into it. We agreed to bring the secretary in so she could buy our one way tickets on the government credit card...
It’s real easy to say you’re 100% against abortion when you’ll never have to make that decision.
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Re: Fraud

Postby Pondero » November 6th, 2014, 11:26 am

Unless there are internal checks which you are not aware of, then such a system shows a lack of internal control and was probably developed in haste. Your internal auditor should take a look at it before implementation.
You do have an internal audit section, don't you?
One hopes so. After all this is the government isn't it! :scratch:


What was that you said Serenjen.. You are the internal auditor. :grin:
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Fraud

Postby Sprocket » November 6th, 2014, 11:33 am

One rather clever, and more-or-less victimless, fraud that I heard of which took place in the early days of computerised bank accounts was perpetrated by a computer programmer who arranged for odd pence from people's accounts to be transferred to his own account. The amount that went missing from the customers' accounts was so small that they probably didn't even notice, but it added up to a significant amount for the fraudster, because the bank had so many customers.
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Re: Fraud

Postby Lyn » November 6th, 2014, 12:18 pm

That was done quite a lot Sprocks and I remember thinking it was very clever. If I'd done something like that I'd have been caught in less than five minutes, such is my luck :evil: .
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Re: Fraud

Postby Pondero » November 6th, 2014, 12:45 pm

I heard of that one Sprocket, that would be very difficult to spot, unless the bank employee drove up to work every day in a new Porsche, that he/she couldn't possibly afford on his salary, and an envious fellow employee reported it to bank executives.
I have done computer tax audits (and strangely enough you don't need to be a computer expert) you start with a company's chart of accounts and all sub-accounts, and get the electronic data records from the company. Then, you stop and think of areas where errors could occur, this thinking could take a day or two of contemplation- yes, really! Then, you ask the experts -the IT professionals to devise a program for you.Then you run it.

EDIT.
I should have added that you are the tax expert, not the computer specialist IT people. And it is you the auditor who tells them in plain English what you are trying to do. You want an exception report.

Also under the computer programme hard-wired to your lap-top you can develop and run some programmes yourself without bothering IT.And you can work at home ;)
Last edited by Pondero on November 6th, 2014, 5:31 pm, edited 1 time in total.
Let nothing disturb you.
Let nothing make you afraid.
All things are passing.
God alone never changes.
Patience gains all things.
If you have God you will want for nothing.
God alone suffices.

— St. Teresa, The bookmark of Teresa of Ávila, [28]
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Re: Fraud

Postby Bev » November 6th, 2014, 1:54 pm

Serenjen wrote:This reminds me of when I worked in finance. There was a review of processes and changes were made. The changes then meant I had permission to redirect money and my best friend permission to set up new accounts.


Actually a friend of a friend did this where I worked. They caught it, though. By the time they did, she had redirected around $300K. Just a few months before, she and I planned a baby shower for a work friend, but she was very reserved, I remember, and difficult to warm to. After she was caught, the police were called, and she was escorted out of the building in handcuffs. She was married and had two little children who went to the same daycare as my youngest. They ended up without their mother for over two years while she served out her reduced prison sentence.
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Re: Fraud

Postby Lyn » November 6th, 2014, 4:30 pm

Two years seems harsh to me Bev, given her circumstances and the fact that no-one died or was hurt. I'm not defending dishonesty by any means but surely a suspended sentence, some community service, probation would have been more appropriate. The law is an ass sometimes.
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Re: Fraud

Postby Bev » November 6th, 2014, 6:36 pm

I thought that too, Vix. It changes from state to state, but the maximum can be as much as ten years. I don't know what her sentence was, but the two years was reduced.

You're better off murdering someone than you are stealing from major corporations (which this one was.) Well, unless you've murdered someone who is very, very rich.
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Re: Fraud

Postby Lyn » November 8th, 2014, 11:40 am

Ooh I don't think so Bev; I could live with myself having creamed off a bit of small change but not after murdering someone! If I was convicted, I'd get life imprisonment and would be permanently wearing ill fitting overalls and working in the laundry (if I was "top dog" I'd work the Hoffman press).
Anyway I'm glad her sentence was reduced.
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