Nice legs and a pretty face don’t qualify you as a bookkeeper, or anything else having to do with accounting. This woman put on a good appearance, but that doesn’t pay the IRS. See story here
Permanent link to this article: http://smallbusinessbandits.com/archives/669
Tragic Consequences of Fraud
Too bad, but some people can do the crime, but not face the time. This site lists some stories of murder and suicide as a result of fraud schemes discovered. See stories here
Permanent link to this article: http://smallbusinessbandits.com/archives/663
Bank Internal Controls Not Considered by SBLF
A new report by the Office of the Inspector General reveals that when estimating the cost of the Small Business Lending Fund, a way to get money into the hands of small business during the recent credit crisis, the formula for the estimate didn’t consider the internal control weaknesses already found within the borrowing banks. …
Permanent link to this article: http://smallbusinessbandits.com/archives/656
Man Laundering Wife’s Embezzled Money
If your spouse does something illegal, like embezzle money, and doesn’t report it to the IRS, you can claim an “innocent spouse” defense if you can prove you didn’t know about the money. Thomas Hutchins can’t claim that defense anymore because he’s been convicted of laundering the money his wife was embezzling from Richardson Hauling, …
Permanent link to this article: http://smallbusinessbandits.com/archives/647
An Opportunity to Steal
The alleged thief claims his misappropriation of the money was justified. He then goes on to say that he over-delivered on his services, so the California trade school he is accused of stealing from actually underpaid him. Rationalizing your actions to yourself is an easy thing to do, especially when you’re walking that gray line …
Permanent link to this article: http://smallbusinessbandits.com/archives/638
Passwords Aren’t Just for Kids
This news story out of Florida is about a bell ringer who was told by someone with an empty kettle that they were to switch them, and he would take her kettle, which was full of money. Unfortunately, he wasn’t authorized to take the kettle, and was stealing the money. Salvation Army employee caught stealing …
Permanent link to this article: http://smallbusinessbandits.com/archives/632
State Budget Cuts => More Embezzlement?
If the state can’t come around to audit the books and records, will the counties and towns lose more money to embezzlers and thieves? The fact is the stated main purpose of an audit in the United States was to ease the mind of management, hence, investors, that the financial statements were presented fairly, not …
Permanent link to this article: http://smallbusinessbandits.com/archives/623
Small Organization Financial Set Up to Prevent Embezzlement
When there is money involved in an organization of any type, no matter how small the amount, there should be cross-check controls to prevent someone from putting the money in his or her pocket. Separation can work this way: President – signs checks but does not have physical possession of check book. Vice-President – can …
Permanent link to this article: http://smallbusinessbandits.com/archives/615
Unbalanced Books? Could be an Indication of Theft.
If you wanted to hide the fact that you were taking money from a company, would you keep the books in perfect order, with everything balanced and accounted for? Probably not? Neither did Cheril Jean Edwards. The owners finally caught on when the overdraft fees started. The estimate is more than $32,000 was taken over …
Permanent link to this article: http://smallbusinessbandits.com/archives/592
Lack of Controls Puts Employee at Risk
In a small town in Vermont, Sherry Roebuck did the financial administration for the local sewer system. She sent out the bills, collected the money, made the deposits, and kept the books. Unfortunately, now she’s been accused of stealing $82,000 of the money. She has plead not guilty, but with no cross-check system in place, she may …
Permanent link to this article: http://smallbusinessbandits.com/archives/588