According to the Mediapost Agency Daily, an embezzlement scheme may be at the center of KSL Media’s bankruptcy. The independent media company recently reduced its staff to 30 employees after filing a Chapter 11 bankruptcy petition, which claimed that “criminal malfeasance” on the part of its former corporate controller, Geoffrey Charness, was partially to blame.
The source reported that in the declaration, Janet Miller-Allen, KSL’s current controller, alleged that Federal Bureau of Investigation, the news provider noted.
AdAge pointed out that before the bankruptcy, KSL employed 135 staff members across several offices in New York, Las Vegas and Los Angeles. The firm filed Chapter 11 in order to “‘conduct an orderly wind-down’ of operations,” as an initiative to restructure was not deemed viable.
The devastation that financial losses due to insider misconduct can be prevented. One simple step any company can take toward securing accounts payable from a variety of damages is to implement a system of frequent AP audits.