We at B&J Bookkeeping are dedicated to helping your business avoid fraud. This is usually done through some shoddy bookkeeping on behalf of an employee, contractor, or other party. One of the most infamous cases of bookkeeping fraud was done in Chic-Fil-A with a sly worker. We will show you how a Chic-Fil-A worker stole $500k below.
1. How They Did It
Larry James Black Junior worked as a hospitality director at the beloved restaurant in Birmingham, Alabama. This week he pleaded guilty to conspiring to commit bank and wire fraud. The charge involved a devious plot that cost his customers and employer almost $500k, said the U.S. attorney’s office. The defendant used the funds to pay for a fancy life that included high class vacations and luxury automobiles. Black is scheduled to be sentenced on January 20, 2022. Another manager, Joshua Daniel Powell, previously pleaded guilty to wire fraud charges in the same plot.
The two men worked together to send customer payments to their bank accounts rather than the intended ones. They also falsified their legitimate income from the franchise to purchase a home. They face up to 20 years in prison.
2. How They Were Caught
Unfortunately, it is not known how or when they were caught. However, we believe that the company eventually noticed the nearly $500,000 in missing funds. It makes sense that at least two workers were involved in the scheme, as there must have been checks and balances to circumvent, especially for a business that large. Additionally, the law may have taken notice of the odd use of paperwork when the two men bought the home.
3. How to Avoid Small Business Fraud
The best way to avoid these types of fraud is to have an impartial third party looking out for you whose only job is to protect your money. Your business should always use the services of a professional, trusted bookkeeper in the area to prevent this type of theft. A bookkeeper is even necessary when you are a business of one. They can help protect you from yourself and any mistakes you can and will eventually make.
More Bookkeeping Tips on Avoiding Small Business Fraud in Houston
Finally, feel free to contact us to help your business avoid this type of shoddy bookkeeping that can cost you thousands. We proudly protect businesses in Houston and the surrounding areas with expert bookkeeping and payroll services.