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	<title>ProcurementAlert.com &#187; auditor</title>
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		<title>Bookkeeper&#8217;s &#8216;fringe benefits&#8217; bust her employer</title>
		<link>http://www.procurementalert.com/bookkeepers-fringe-benefits-bust-her-employer/</link>
		<comments>http://www.procurementalert.com/bookkeepers-fringe-benefits-bust-her-employer/#comments</comments>
		<pubDate>Fri, 13 Mar 2009 11:00:34 +0000</pubDate>
		<dc:creator>Charlie Walker</dc:creator>
				<category><![CDATA[In this week's e-Newsletter]]></category>
		<category><![CDATA[Latest News & Views]]></category>
		<category><![CDATA[audit]]></category>
		<category><![CDATA[auditor]]></category>
		<category><![CDATA[embezzle]]></category>

		<guid isPermaLink="false">http://www.procurementalert.com/?p=1519</guid>
		<description><![CDATA[Famous last words: &#8220;We don&#8217;t need an outside auditor. We trust our people.&#8221; It was that false sense of security that allowed a bookkeeper and financial officer to loot her employer for $9.9 million &#8212; that she used to buy 400 pairs of shoes that she stored in an enormous closet equipped with its own [...]]]></description>
			<content:encoded><![CDATA[<p>Famous last words: &#8220;We don&#8217;t need an outside auditor. We trust our people.&#8221; <span id="more-1519"></span></p>
<p>It was that false sense of security that allowed a bookkeeper and financial officer to loot her employer for $9.9 million &#8212; that she used to buy 400 pairs of shoes that she stored in an enormous closet equipped with its own 32-inch plasma TV and a crystal chandelier.</p>
<p>Ouch!</p>
<p>Over a period of six years, she embezzled from her employer, a California cabinetmaker. Each week, she&#8217;d ring up $25,000 in credit card purchases (you&#8217;d have to work pretty hard to maintain that pace, wouldn&#8217;t you?).</p>
<p>The following Monday, she paid off the balance with company funds.</p>
<p>Some of the booty:</p>
<ul>
<li>400 pairs of shoes, at least $240,000</li>
<li>designer clothing, $300,000</li>
<li>160 purses at $2,000 each.</li>
</ul>
<p>The company didn&#8217;t notice anything awry until a customer informed them that the customer&#8217;s check had been used to make a payment on the wayward employee&#8217;s account.</p>
<p>No auditor was ever hired to check the books, since this employee held such a position of trust.</p>
<p>In the meantime, her employer was forced to lay off employees and restructure operations due to money problems.</p>
<p>She was fired and turned over her assets. The company recouped about $2 million from selling her home, cars and other property.</p>
<p>It looks like she could end up getting a new room soon &#8212; one that&#8217;s significantly smaller than her shoe closet and with bars on the windows.</p>
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