Can your business survive a $200,000 embezzlement or other fraud scheme

Can your business survive a $200,000 embezzlement or other fraud scheme?? What if that scheme was spread out over 10 or 15 years?? Would you notice?

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Denise, a $35K a year bookkeeper, for a small trucking company in Alabama is facing several years in prison for embezzling over $550,000 from the Nike Shox Rival,.? What did Denise do with all this money?? She spent it on cosmetic surgery, new cars, luxury vacations, and jewelry.? She was living the high life.???

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I am sure most of us remember the name Gus Gorman.? He was the character played by Richard Pryor in Superman III.? How did he get caught?? Well, he was stupid.? He showed up to work in a new Ferrari.? Unfortunately, most fraudsters do not give themselves up like this and many employers may not even notice.

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Denise got caught not because of the huge sums of money that she was wiring out of the company account into her own, but because she changed her annual salary from $35K to $38K.? When the owner of the company noticed this small discrepancy, it was the beginning of an investigation that kept growing and growing.?

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Like this trucking company, most small businesses lack fundamental controls to prevent and detect fraud.? Denise was responsible for all of the accounting and bookkeeping functions except the physical signing of checks.?? Denise would periodically wire funds from the company’s account to her own account.? When the bank statements came, she would reconcile them, Nike Shox TL3,burying the wire transfers into an expense account and then destroying the evidence – the bank statements.? Since the owner did not review the bank statements – he was none the wiser.