Fraud spreads through local and overseas accounting sectors

Industry news roundup: week ended 6 March 2014:

I don’t know what it is but it seems like the instances of accounting fraud are spreading like wildfire in the UK, only to be followed by the rest of the globe.

First of all, the big story this week on the local stage concerns saw a total of £4.8 million being charged to Speedy Hire, a rental company that specialises in construction equipment, based on the fact that it has basically shedloads of accounting irregularities with £2.7 million of this fee originated from its international division apparently. The worst part about this whole debacle is that this wasn’t just an oversight but a deliberate attempt on the part of a handful of Speedy Hire employees to pull the wool over the eyes of everyone – and the company has said in no uncertain terms that those responsible for the action are no longer with the company.

So yes there’s a bit of homegrown accounting fraud for you this week, but don’t worry – the UK doesn’t have a monopoly on mutton-headed pillocks. In fact, the newest example of idiocy in accountancy comes from the American state of New Jersey, commonly thought of as one of the most reviled areas of the US. One New Jersey woman has racked up around $1.3 million thanks to her wire fraud, and her employer is none too happy about it.

Employed by interntional freight forwarding provider Toll Global Forwarding, Karen Snipes had aces to the accounting and bill payment systems for the multinational in her role as a member of the accounts payable department. Snipes was caught red handed falsifying invoices in order to pocket cash into her own bank accounts, writing checks to herself in order to take care of such lofty goals as paying off credit cards.

Snipes attempted to cover her tracks, but it’s funny how hard a company searches after it’s discovered that some $1.3 million of its cash goes missing. The woman was invariably caught. She must have known she was up the creek too, because she entered a plea of guilty in Federal court this week. Now she’s got to pay back every last cent as well as an additional $250,000 in fines – of course it might take a very long time to pay her former employers back, considering that the crime also carries a jail sentence of as much s twenty years.

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