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When crooked employee hid scams by booking in profits for company
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No one suspected the manager because she always booked in profits for the fake orders.
ST ILLUSTRATION: MANNY FRANCISCO
Follow topic:
- A marketing manager orchestrated a fraud using fake orders and payments involving customers and a supplier. She ensured the company booked profits before sharing the balance with accomplices.
- The company's $800,000 lawsuit against the manager's estate failed, with the High Court ruling it did not suffer any losses since customer funds were used in the fraud.
- The case highlights the need for robust checks, multiple employee oversight and employee honesty, as systems alone cannot prevent fraud.
AI generated
A manufacturing company sued its marketing manager for creating hundreds of fake orders to line her pockets, but its $800,000 lawsuit failed because it could not prove that it suffered losses despite being a victim of fraud.
This was because the funds from over 200 fake orders came from its customers and the culprit made sure “profits” were booked for her company before she shared the balance with rogue buyers of the customers and a supplier who were all in cahoots with her.
