Another case of fraud committed by a former bank employee brought to light the need for accounts payable recovery audits at organizations that handle consumers’ money.
According to the Nashville Business Journal, Kaley Gregory of Gallatin, Tenn., recently pleaded guilty to charges that she embezzled more than $264,000 from a local branch of Volunteer State Bank, United States Attorney David Rivera said in a statement. The 29-year-old woman formerly worked as the bank’s head teller. She committed the crimes between 2009 and 2013.
The Tennessean noted that Gregory told the Federal Bureau of Investigation she falsified bank records in an effort to cover up her thefts. She admitted to entering fraudulent information into the institution’s electronic accounting system, in addition to manipulating audits to conceal her actions. She allegedly used an account under the name of one of her relatives to transfer the stolen funds to her personal control.
“She kind of manipulated the system and we eventually caught it through our normal audit procedures,” said Volunteer State Bank President and CEO Matt Ricker, according to the news source. “I guess you could say she’s pretty sharp; she knew how to work the system.”
One wonders if the institution would have caught the theft sooner had it implemented more effective audit solutions.