Fall/Winter 2018-2019 | BWD 13
5.13.18 – 9:00 a.m.
Verbal report to client:
• Background investigation shows two bankruptcies
in early 2000s; husband unemployed. Home value
$750,000, purchased in 2017.
• Embezzlement trail (4 years)
– 42 company checks to cash or to personal CC
account: $350,000
– Company CC charges for personal expenses:
$150,000
• Total approx. $500,000
Client OKs my investigative interview with the bookkeeper.
5.18.18 – 9:30 a.m.
Meet bookkeeper in office for interview. After 2 hours
of obfuscation and offering chocolate chip cookies,
confesses to taking over $100,000 — tears flow, so sad.
5.18.18 – 11:00 a.m.
Box up her personal effects, escort out of work space and
home to retrieve company digital devices. Remove all of
her access from systems and facilities.
5.18.18 – 1:30 p.m.
Call with client. Their concern: loss recovery.
Recommend these steps:
1) Retain counsel
2) Engage for full forensic accounting to total actual loss
3) Refer findings to law enforcement for prosecution
4) With guilty plea or verdict, court can order asset
seizure/restitution.
Encouraged to review insurance policy for possible
coverage of investigative costs and losses.
Current status: Forensic accounting completed; total loss
$600,000. Referred to law enforcement for prosecution.
Insurance policy did not cover.
Trust is not an internal control. For assistance, contact
Rehmann CIS: 248.267.8445.