A bookkeeper for a Colorado financial company was arrested at her home
in Jefferson County last Friday for investigation of embezzling $760,000
from a Boulder financial company, starting just two months after she began
working for the company in 2006.
Another accountant, who was filling in for the regular accountant while
she was off work, discovered that large money transfers were being made
into two personal bank accounts. The company then had an audit conducted
and notified police of the suspected embezzlement.
This type of employee defalcation seems to happen with regularity, not
only in Colorado, of course, but also in states across the nation. The
most common cause in these thefts of an employer’s funds most often
is the lack of regular audits, both internal and external.
All the glowing references in the world for a new bookkeeper or accountant
and all the trust that a company develops for that employee should never
take the place of regular audits. In addition, employee defalcation insurance
-commonly called fidelity bonds–are a must. This type of insurance
recognizes that even trusted employees have been know to steal, in which
event the employer is reimbursed for the loss by the insurance company.
All businesses should institute basic guidelines to help prevent or minimize
employee dishonesty. These guidelines should include at a minimum such
steps as making sure that an employee who receives money on behalf of
the business is not the same employee who makes the bookkeeping entry
for that same money. Another safeguard is seeing that a duplicate of deposit
slips prepared by one employee are kept and then compared by a different
employee with bank receipts, to ensure that deposit slips are not altered
on the way to the bank.
Large business corporations mostly are well aware of how to protect themselves
against employee embezzlements. Sometimes, however, medium and smaller
businesses tend to be more lax in employee oversight and make themselves
vulnerable to financial losses from employee theft.
“Boulder Charity’s Funds Allegedly Embezzled by Bookkeeper,” Colorado Business Litigation Lawyer Blog, posted 01/25/11
“Colorado Victim Advocate Accused of Victimizing Victims,” Colorado Business Litigation Lawyer Blog, posted 10/19/10