SITUATION: A company advises that the office manager of its foreign subsidiary failed to deposit close to $300k in client payments into the company’s bank account. The perpetrator is being prosecuted criminally in that foreign country.
OUTCOME: Total loss approached $300k
SITUATION:An employee in the accounting department allegedly manipulated the payroll to give himself over $400,000 in unauthorized bonuses over a few years. The police were notified and are also investigating.
OUTCOME: The loss is still being reviewed.
SITUATION: After the retirement of a company comptroller, his replacement noticed an unusual recurring monthly payment that had been made over the previous few years to an unknown recipient for tens of thousands of dollars each. Later it was revealed that the former comptroller would take advantage of the elderly owner of the company by having him sign these fraudulent checks (the funds went to the perpetrator/former comptroller in a roundabout way) on the days in which the CFO was not present. The owner was not aware of the deceit, and the perpetrator was indicted for fraud.
OUTCOME: The loss exceeded the $1 million limit.
SITUATION: Controller of a company contacted clients and offered them deep discounts if they would pay him their invoices in cash. He then applied only a small percentage of what he received to the client’s account. The perpetrator would also spread the money around to other clients’ accounts so it appeared that many clients were slowly paying down their debts. By the time the company realized what was happening over one million dollars was embezzled and the FBI was contacted.
OUTCOME:Total loss exceeded the $1 million limit of liability.
SITUATION: A company receives a shipment of 75 new computers. The computers were signed for, but the documentation was creatively changed to 70 computers. The computers were stored in a secure room. After two months, the company figured out that they were missing 5 new computers. An investigation into the matter revealed the change in documentation.
OUTCOME: The total cost of the theft was approximately $25,000.
SITUATION:A supply company for retail stores reported three instances in which product was missing. The retail store reported missing supplies to the supply company. After an investigation the driver and supervisor confessed to the three thefts.
OUTCOME: The total cost of the theft was approximately $25,000.
SITUATION: An employee uses a company credit card to purchase 35 expensive laptops. The employee resigns and the company cannot locate any of the laptops three months later.
OUTCOME: The total loss to the company was $122,500.
