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Small database of fraud and embezzlement cases for 2012

19 May

Fraud Database

Just for fun, I’ve started pulling stories of fraud and embezzlement from the internet and logging them into an Excel spreadsheet. These are all within the last 6 months. I’m trying to limit the selection to 2012 so it’s current. It’s got only 22 records so far, but I will continue to work on it.

I entered the search term “Bookkeeper charged with embezzlement 2012” and got 145,000 hits returned. I printed out the first 10 pages with about 10 links per page. Some are duplicates. I also did a search for “Executive charged with embezzlement 2012” and got another slew of hits. I printed out 10 pages of those. When those are done, I will try President and Manager for search terms. I’m hoping to end up with about 400 records. Oh, and the year is not even half over.

I have added more records since I first posted this.  There are now 49 records.

For the original 22 records, the total fraud exceeds $10 million. That’s almost $500,00 average per fraud. Look at the description of the fraud. It doesn’t seem like any were very sophisticated. It looks like in almost every case, there was nobody checking on the bookkeeper – a lack of segregation of duties.And the bookkeeper simply forged signatures on checks and made fraudulent credit card charges on the company credit card.

Bookkeepers and accountants in private practice should use this information to educate your clients on the critical importance of good internal controls.This should scare the crap out of any small business owner. Or church. Or non-profit organization. Or school.

Please leave me any comments you might have regarding this. Thanks.