Deputy district attorney talks San Joaquin County business embezzlment
By James Striplin, Lodi News-Sentinel, Calif. | |
McClatchy-Tribune Information Services |
Recently,
Much like the fraud that at the end of the Roaring '20s, there has been an up-tick in embezzlement following the "boom and bust" of the economy that occurred late 2007, Taylor said.
"We have seen an unusual bump in embezzlement," Taylor said. "The problem that I'm dealing with is that (in) virtually every case, the businesses were not being run in a business-like fashion."
Businesses hit by embezzlement often don't use normal accounting controls, Taylor said, instead turning everything over to one person -- often someone they "trust like their child."
"Well, they're not your children," Taylor said.
Suspects are often bookkeepers who had total control over areas such as mail. If a bookkeeper is taking control of the mail and locking the owners out of business finances, Taylor said, something is wrong.
Fraud thrives in situations where there aren't any checks and balances, Taylor said -- such as a business owner not checking over bank statements.
On Wednesday, two 19-year-olds were arraigned on suspicion of embezzling
The same applies in cases that involve gas station pumps and managers who don't check the meters, he said.
Taylor has seen people give full charge of bookkeeping to foreign nationals, he said. The problem with hiring foreign nationals, Taylor said, is that they may transfer funds to their home country, putting it out of anyone's reach.
Taylor also sees people hired as bookkeepers who have a criminal histories or are addicted to drugs, he said.
"You know, when you see the probation reports that come back on these people, you'll go, 'My god, you let
Businesses sometimes hire people right out of high school for large bookkeeping functions, and instead of paying around
"The business don't want to become professionals, they don't want to hire professionals, they don't want to pay professionals," he said.
Every business should get embezzlement insurance, Taylor said, which can cost anywhere from
Even small business owners should educate themselves with a few classes from
"It's the cost of doing business," he said.
Over the years, the incarceration system has become unreliable when it comes to people who embezzle, according to Taylor.
"It's no longer possible to go to state prison for stealing
The worst thing defendants of embezzlement have to worry about is getting jail time, Taylor said, and with county jails getting over crowded, people who commit fraud are getting shorter sentences.
Anyone looking for help with embezzlement can call the
Contact reporter
___
(c)2014 the Lodi News-Sentinel (Lodi, Calif.)
Visit the Lodi News-Sentinel (Lodi, Calif.) at www.lodinews.com
Distributed by MCT Information Services
Wordcount: | 668 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News