We at B&J have shared many bookkeeping scams in the past. Good bookkeeping is the cornerstone of any successful business. It keeps the IRS happy, as well as gives you a detailed look at how you are doing. Keeping those who would steal from you in check is yet another little-known benefit.
Who, What, When, and Where?
We have a pretty good idea of why this woman stole millions: because she could. The guilty woman is 57 year-old Debra Mulloy from Milford, Massachusetts. She did it by using a company credit card in the name of another worker to make fraudulent purchases. This went on from 2012 until 2016 when she was eventually caught. How did she do it? Mulloy was able to do so because she was in charge of the business’s accounting and bookkeeping tasks. With no one to look over her shoulder, she fleeced the company into paying for $2.4 million in phony charges, in addition to another $300,000 in false business checks made to her creditors.
She pleaded guilty just this month and will be sentenced on October 9th of this year. Read the entire for yourself by clicking here.
How could it have been stopped? This business clearly didn’t have any external audits, bookkeepers, etc. They left this woman alone for years to do as she pleases. All business should take note. One rogue employee can really hurt you even if you have a small to mid-sized business.
Why You Need Bookkeeping: Vatican Edition
But wait, there’s more! You would think a holy institution like the Vatican would be safe from bookkeeping shenanigans. You would be wrong. Recently the Vatican dropped a criminal case against an outsourced auditor for unethical practices. The accused said he was fired for getting too close to sensitive information. The Vatican says the auditor went “was spying on the private lives of his superiors and staff…If he had not agreed to resign, we would have prosecuted him.”
Police say there is “overwhelming evidence” agains the accused. He maintains his innocence.
Conclusion on Why You Need Bookkeeping
What does this have to do with your business? You may not have $2.7 million to steal from nor have any religious affiliation. However, the above goes to show you how even companies at the top of their industry can still be subject to bookkeeping fraud. The same goes for businesses of all sizes.
Bookkeeping in Houston
Be sure your business does not fail due to a similar scheme by getting an expert bookkeeper. If you need bookkeeping in Houston, feel free to contact us.
