The need for proper financial visibility to protect against fraud is not industry-specific. Rather, a recent case of executive-level fraud in an unlikely sector made it clear that companies with a range of specializations can benefit from tools like audit solutions.
According to a statement by the King County, Wash., Prosecuting Attorney's Office, former Curtis, Inc., Chief Financial Officer Rickey Charles Goodrich recently pleaded guilty to six charges of theft in the first degree. Goodrich's company is best known for providing management to Seattle-based rock band Pearl Jam. The charges stated that he embezzled more than $300,000 from the firm over a three-period ending in 2010, although he has already repaid $125,000 of that total.
Goodrich may face a considerable reduction in sentence if he makes good on his commitment to refund the remainder of the embezzled money.
"As part of the plea agreement, if the balance of restitution is paid before sentencing, the state will recommend a six-month jail sentence," the state attorney's office wrote. If he doesn't pay, he'll face a 14-month term.
The Sky Valley Chronicle reported that in addition to paying off personal debts, Goodrich allegedly purchased spa treatments and family vacations with the stolen funds. Hopefully, the case will encourage firms in the industry to be more proactive about protecting their internal finances.