Any type of intentional financial misconduct can be devastating for businesses. Realizing it is the person overseeing all monetary transactions adds to the shock. This is what happened for one company in Sacramento, California.
According to Loan Safe, Vincent Doyle, who served as the chief financial officer for a civil engineering company, is being accused of embezzling approximately $2.5 million from his employer, after an AP audit revealed that he had been creating fraudulent checks from the business' accounts. Investigators allege that Doyle wrote unauthorized checks to himself and would deposit them into his own personal bank account.
The theft went unnoticed from 2001 to 2009 because he managed to keep the embezzlement hidden by entering false information into the firm's financial records. An accounts payable audit revealed the scheme after Doyle retired in 2009, and he is now facing one charge of mail fraud. If convicted, he could serve up to 20 years in prison as well as a $250,000 fine, the news source reports.
Businesses and organizations of any size and within any industry can use accounts payable audits to gain better insight into their finances and how things are being handled. Besides embezzlement, these audits can highlight other instances of misappropriation, including duplicate payments and poor oversight.