“Well, either you're closing your eyes to a situation you do not wish to acknowledge, Or you are not aware of the caliber of disaster indicated by the presence of a pool table fraud in your community.” With apologies: Harold Hill – The Music Man YA GOT TROUBLE…
26
Embed
“Well, either you're closing your eyes to a situation you do not wish to acknowledge, Or you are not aware of the caliber of disaster indicated by the.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
“Well, either you're closing your eyes to a situation you do not wish to acknowledge,
Or you are not aware of the caliber of disaster indicated by the presence of a pool
table fraud in your community.”With apologies: Harold Hill – The Music Man
YA GOT TROUBLE…
Avenues to Fraud
Purchasing Card FraudTheft of EquipmentTravel Reimbursement FraudPayroll Abuse
Avenues to Fraud
Cardholder abuse and fraudDiversion of goods to personal use.Purchase from vendors with
conflict of interest.Sale of goods to others (generally
via internet)Purchase from cardholder’s own
“store” at a markup
Oops…a mistake!?Employee makes a personal purchase on-line.Inadvertently selects the institution’s P-card
as the method of payment.Notes the error and indicates in the
explanation that it was a mistaken personal purchase and will be reimbursed.
Fails to reimburse the institution.
“I say, first, medicinal wine from a teaspoon,
Then beer from a bottle. An' the next thing ya know, Your son is playin' for money
In a pinch-back suit.”
Show me the money!
The plot thickens…Noticing that the approver never questions
her P-Card purchases, an employee buys items for personal use.
Employee provides fictitious explanation for purchase.
If supporting detail is requested, employee “doctors” the invoice to reflect a valid business purpose.
Employee sells goods through her internet store which gets great ratings for service and value.
Reckoning…
Lost job at BYUProsecuted for $53,000 of theft
Plead guilty to all charges (felony)
Required to pay back the loss
I bought too much…
Cardholder purchases computers, toner cartridges, etc.
Sells the equipment on e-Bay™
Items sell quickly because of the low price.
Inventory Control
Reckoning…
Lost jobProsecuted for $200,000 in theftPlead guilty to multiple felony counts
To be sentenced in March 2010Will be required to make restitution
BYU Examples cont…Manager “can’t be bothered with the
mundane activities associated with approval of purchasing card activity,” so delegates it to the cardholder.
Over four years, the cardholder purchases over $150,000 in merchandise and sells it via e-Bay™.
Transparency and Accountability
Reckoning…
Turned over to police and county prosecutor
Likely will be charged with multiple felony counts.