The variations in the types of employee frauds are numerous. In each case there is an element of a breach of trust, either by omission or by fraudulent misrepresentation. Occasionally, the omission is as simple as the theft of company property. In other cases, the omissions and misrepresentations are complex accounting schemes that are disguised so well that the victim corporation does not discover them for years. In the case of a complex fraudulent scheme where an employer holds an employee in a position of trust for a specific purpose, the Court may acknowledge that the employee stands as a fiduciary to his or her employer-company.
We have handled numerous recovery files against miscreant employees of client-companies. One such example was when a retailer’s cash manager perpetrated a cash skimming scheme over a four-year period. In this case, the cash manager would review the cash bags turned in daily from the cashiers and, in order to maintain the balance of funds received as reported by the cashiers, he would replace cash with the recycled or unused vouchers and gift certificates that were available to him. The downfall of the wayward cash manager resulted from his taking a mental health leave to address his alcoholism. During this period, the losses stopped. When he returned to work, he continued his scheme, resulting in the internal auditor’s noticing a sizeable difference in voucher and gift certificate use. Covert surveillance was installed in the cash manager’s office, confirming the suspected cash skimming scam.
At Investigation Counsel, we are familiar with investigating and litigating many forms of employee fraud, and we welcome you to contact us to discuss an investigation and recovery plan.