Posts tagged "embezzlement"

Bad Ethics: Woman Steals a Million from Her Employer

There is a famous line from an Ernest Hemingway novel where one character asks a formerly rich man, “How did you lose your fortune?” Said the formerly rich man, “First, a little at a time, then all at once.” Bad ethics and poor choices can often work in the same way especially when it comes to fraud and theft.

The opportunity to steal may be there and at first an unethical person who feels he or she has the need to steal might dip their toe in the water to see if anyone notices, then it will get a little more bold with each occurrence.  This is the foundation of bad ethics.  At some point, the unethical person may get in so deep that repayment or reconsideration seems almost pointless. In fact, the unethical person may construct all kinds of justifications that are almost absurd in their logic. For example, “He’s such a rich so and so, he deserves to get some of it taken from him.”  Bad ethics almost always ends with distorted rationalizations.

Continue Reading

Posted by Chuck Gallagher in ethics and tagged , , ,

Credit Union Ethics: Former Credit Union Head Guilty of $2.5 million Embezzlement

Fraud happens for a variety of reasons.  Most fraudsters will tell you that they never intended to destroy their lives by perpetrating a fraud and break trust.  Most, like myself, started out with the best of intentions.  But there are some bad apples in every bunch Credit Union Ethicsand, it appears that Linda Lee Clark, 68, of Corydon, Iowa was a bad apple.  Clark who began working at the SCICAP Credit Union in Chariton, Iowa in 1978 admitted to embezzling  $2,494,809 of funds from the credit union from the day she started until she resigned in 2015.  This case represents a blatant violation of accounting ethics from someone who knew better.  Whether credit union ethics, banking ethics or accounting ethics – this case is nothing more than fraud pure and simple.

Credit Union Ethics (or lack thereof)

It is unclear what Linda Lee Clark did before her initial employment at SCICAP Credit Union.  According to media reports from the beginning, Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. When it comes to credit union ethics, it’s clear that Clark started with the intent to deceive and was smart enough to create a credible paper trail that worked for some period of time.

Continue Reading

Posted by Chuck Gallagher in Credit Union Ethics and tagged , , , ,

Jennifer Elizabeth Meehan Sentenced to Prison

“I became caught up in my own fantasy.”  That is true it was a fantasy and today Jennifer Elizabeth Meehan was sentenced today  to six months in prison and fined $50,000.  In addition, U.S. District Court Judge Madeline Haikala also sentenced Jennifer jennifer-elizabeth-meehanElizabeth Meehan, 40, to serve 18 months of home confinement, 40 months supervised probation. She also is to serve eight hours a week community service while on home confinement and probation.

An earlier article outlined her crime.  http://www.chuckgallagher.com/jennifer-elizabeth-meehan-attorney-charged-with-defrauding-gamma-phi-beta-sorority-house/

From an unpaid volunteer position, Meehan has now through her own doing lost her license to practice law for a set of dumb stupid choices.

Continue Reading

Posted by Chuck Gallagher in embezzlement, Financial Fraud, fraud, legal and tagged , , , , , ,

Credit Union Fraud: Former Credit Union CEO Charged with Fraud

Credit Union fraud is never good.  The board of directors of the $42 million Toledo Metro Federal Credit Union told their former president/CEO Charles Robert Poore they wanted to ask him about numerous suspicious transactions on his corporate credit card.

Credit Union FraudThe next day, Poore resigned and was never seen again at the Toledo, Ohio-based cooperative.

Federal agents, however, found Poore in Pittsburgh and arrested him Tuesday on a felony charge of thrift and credit union theft, embezzlement or misapplication. After a hearing in U.S. District Court in Pittsburgh, Poore was released on a $25,000 bond.

A TMFCU internal investigation revealed from December 2011 through May 2014, the credit union paid a total of $269,593 to Visa for transactions Poore made on his corporate credit card. Most of those transactions primarily paid for office equipment and supplies, according to a federal affidavit filed in U.S. District Court in Pittsburgh.

Continue Reading

Posted by Chuck Gallagher in business ethics, ethics, Financial Fraud, fraud, Fraud Pure and Simple and tagged , , , ,

Michael Wombolt: When Accountants stray from Ethics

In an article by Matt Hudson from the Billings Gazette we find a “popular Billings accountant” facing federal embezzlement charges which has to cause the business community to ask “Why?”!  To be clear, I do not know Michael Wombolt, but I do know a thing to two about how such a downfall can take place.  I’ve been in his shoes and it’s no pretty.

Michael WomboltHudson’s news report states the following:

Michael Leonard Wombolt was indicted in December on eight counts of wire fraud through his dealings with Harvey Ost Oilfield Services, a Malta company. He’s accused of moving money from the client to his own business accounts and trying to cover the tracks.

Continue Reading

Posted by Chuck Gallagher in Business and Personal Ethics, Financial Fraud, Fraud Pure and Simple and tagged , , , , , , ,

Many Faces of Fraud – Benita Dinkins-Robinson sentenced to Prison!

Continue Reading

Posted by Chuck Gallagher in ethics, Financial Fraud, Fraud Pure and Simple, prison and tagged , , , , , ,

Bank Fraud – Alexander Alvarez faces prison for stupid crime!

Do you really think you’re that smart?  I’m sorry but some folks are just idiots.  By the way, I fell into that category many years back so if you’re saying it takes one to know one…theN guilty as charged.  Because of my vast experience, I can call this guy an idiot when it comes to white collar crime.

"Well, I always told you that your ability with numbers was criminal."

“Well, I always told you that your ability with numbers was criminal.”

The United States Attorney for the District of Connecticut, announced that Alexander Alvarez, 33, of East Lyme, was sentenced to 18 months of imprisonment, followed by four years of supervised release, for stealing more $100,000 from customers of the bank where he was employed.

Hum…an Inside Bank Job

Continue Reading

Posted by Chuck Gallagher in bank fraud, Business and Personal Ethics, Ethical Behavior and tagged , , , ,

Dana Cope Charged with Fraud against State Employees Association of NC

What happens when the unethical director of a nonprofit agency goes unsupervised? It could result in fraud amounting to more than a half million dollars.

Dana CopeIn an article by journalist Dan Kane appearing The News & Observer (August 3, 2015) entitled: “Former SEANC director Dana Cope to face felony charges,” we learn of the unethical going’s on of Dana Cope.

“Dana Cope, the former longtime head of the 55,000-member State Employees Association of North Carolina, was indicted Monday on felony charges that he took $570,000 of the organization’s money and spent it on flight lessons, landscaping, home appliances, vacations and other unauthorized purchases.”

Continue Reading

Posted by Chuck Gallagher in ethics, Ethics - Political, Financial Fraud, Fraud Pure and Simple and tagged , , , ,

James Kalpakis – A Lawyer Who Took a Very Wrong Turn on the Ethical Highway

On December 3, 2013, disbarred lawyer James Kalpakis is scheduled to be sentenced at the Nassau County Courthouse on Long Island (New York) to grand larceny in the first degree and second degree.

James KalpakisKalpakis has been found guilty of stealing more than $4 million from his clients, ex-wife, friends and even his ex-girlfriend! He could get a 10 year sentence for his crimes in Nassau County alone, and then there are charges looming in Suffolk County and New York City.

 In an online article for CNBC (October 11, 201), writers Valerie Patriarca and Andrea Day detail the downfall of a man who disregarded every shred of ethical behavior in favor of greed and life-style.

Continue Reading

Posted by Chuck Gallagher in fraud, Fraud Pure and Simple, prison and tagged , , , , , , , ,

White Collar Crime hard to Deter? Perhaps we’re trying the wrong approach says Business Ethics Speaker Chuck Gallagher

How do companies deter White Collar Crime?

White Collar Crime

White Collar Crime

With media reports filled with stories of “white collar crime” such as the developing Koss embezzlement story and the on-going reports related to Allen Stanford and recently sentenced Bernie Madoff, it’s no wonder that organizations are seeking to find deterrents to this seemingly growing phenomenon.

As I prepare to address a group in just hours, I came across this article in the Charleston Regional Business Journal and it struck me – “We’re going about this all wrong!”  But, before I suggest what’s right let’s look at excerpts from the article featured below.  The whole article is here:

Law school panelists: White collar crime hard to deter

By Andy Owens
aowens@scbiznews.com
Published Feb. 22, 2010

Continue Reading

Posted by Chuck Gallagher in embezzlement, New Website, prison, SEC, white collar crime and tagged , , , , , , , , , ,