Internal Fraud by a Company Executive

I knew and occasionally worked with Marty Greeley.

What was the sin in this case?

Lack of segregation of duties!!!!!

Marty approved the vendor (himself as a fictitious vendor), he was responsible for the vendor’s fake work, and he approved the invoices for payment. One person handling the entire process from beginning to end. Every employee in history who has been convicted of theft, embezzlement, or other crime was hired as a trusted employee-Trust is no control

Generally, Hannaford was a very well managed company and I enjoyed working there.

August 29, 2006

SCARBOROUGH, Maine — A former Hannaford Bros. v.p. of government relations  plead guilty in U.S. District Court in Portland, Maine to mail fraud and tax evasion charges, according to published reports. Prosecutors charged that Martin T. Greeley, a 26-year veteran of Hannaford, who started there as a meat cutter, swindled the company out of over $657,000.

Greeley, who attained his last position at Hannaford in 2002, could receive up to 20 years in jail, a $500,000 fine, and a $200 special assessment.

Starting in late 2000, Greeley fabricated vendors and authorized payments from Hannaford to those fake vendors for fictitious services, according to prosecutors. He then deposited checks made out by Hannaford to the fake vendors into accounts he had opened for the purpose.

Hannaford reported Greeley’s conduct to the proper authorities and participated in the ensuing investigation, which was run by the FBI and the IRS. U.S. Attorney Paula D. Silsby said she anticipated that Greeley would have to make restitution to the grocer for its losses as a result of his scheme.

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