An Examination of 151 Embezzlement Cases from 2012

A Narrative discussion on impressions from a small collection of embezzlement cases from 2012

There are 151 records in the database. But there is one duplicate and another where the same person stole from 2 different companies in the $1 million and over group. There is also one record from the country of the Netherlands – the largest, at $24 million. Let’s eliminate the pure dupe and the $24 million outlier, leaving 149 records.

For some ease of analysis, I’ll break the records into three sections:

17 records $1 million and over

62 records $100,000 to $1 Million

70 records Under $100,000

Let’s look at each group individually.

For the complete story and all the others on this blog, visit Amazon and search for “Tales From The Trenches,” available after August 31st, 2020.

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3 Comments to “An Examination of 151 Embezzlement Cases from 2012”

  1. bing says:

    Thank you for the data and the analysis!
    We are a small recruitment organization (i.e. place contractors/temps to the clients and do the payroll for them)and in the category of ‘we trust employees and we cannot afford more internal controls’. I am doing a quarterly exercise to reconcile internal employees’ bank account details, vendor bank account details and contractor bank account details. While this exercise does not capture any duplicate payments and/or set up contractors on friends’ name/bank accounts. Do you have any experience that we can borrow? Thanks in advance!

    • Benson says:

      I would have to have more details on the specifics of business process you have in place to be able to provide anything helpful. What functions do your temps perform? What kind of business are represented by the client firms? As the recruitment organization, what role do you play in the operations of the clients? This sounds like an unfamiliar relationship compared to the standard in the USA.

  2. Ricardo Atencia says:

    You may add the following as simple means of control:

    1) Regularly reconcile billable hours to your clients for each pay period vs. hours paid to contractors / temps through the payroll system.

    2) On a random basis, review aged receivable for non-payment (could indicate non-existing clients) – review the contracts. Concentrate on new or unknown accounts.

    3) Pay a visit to clients identified in 2) above.

    4) Ensure that when a client account is set-up, there is proper establishment procedures, i.e. contracts / agreements signed by appropriate delegated person.

    Hoping the above simple steps are helpful to you. Checking bank accounts would surely help, but this is already at the tail-end of the control process. In my opinion, there should be more concentration at the beginning of the control process (we can consider this as preventive) rather than more emphasis on detecting by way of reviewing bank accounts. Cheers!

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This entry was posted on January 4, 2013 and is filed under Fraud and Embezzlement. Written by: . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.