10/24/2013    Name Withheld

My Office Was Embezzled

For the benefit of those of you out there who
haven't experienced this, and in whose offices it
may take place (and likely in some is currently
taking place). I thought it prudent to open a
discussion on staff embezzlement.

Our medium sized group is currently in the middle
of working through how much we have lost over a
three year period or so. The number went over six
figures today. The practice experienced this about
20 years ago on a minor level and fairly strict
prevention measures were established then to
prevent recurrence. Of course, we've become a
little lax but in general we have tried to be
diligent about these matters.

Our doctors and office manager (who perpetrated
this whole mess) review financial data monthly and
have been for many years. Despite this, we have
been taken for a very expensive ride. Theft can
occur - despite what we naively think - even when
very strict accounting/ money handling practices
are in place.

I don't know that a running litany of how many of
us have had this happen will be of much benefit
but rather some recommendations on how we have
responded when it has happened to prevent it again
might be useful to all of us. The dollar number is
painful enough to swallow but the scorched earth
around it is equally hurtful. Relationships are
severed, other staff are penalized, plus lawyers
and accountants (at least in my area) are
expensive.

Further someone in your office has to stop doing
what you usually pay them to do and root around in
your books trying to reconstruct what and how much
damage actually occurred.

Suffice it to say that on many levels this really
hurts. Maybe we can help each other to prevent or
at least reduce this in the future.
My initial advice would include

1. If your gut tells you something is going on it
probably is. Follow up
2. Don't be afraid to investigate. You might want
to check with your lawyer before a confrontation
3. Put in place overly strict money handling
procedures. The website listed below will give you
advice on this as will your accountant
4. Be aware of the profile of an embezzler. Also
in the website below. You'll be surprised when you
read this! I'll bet your offices are full of these
individuals.
5. Embezzlement is almost by the most trusted
person in your office. Trust them but keep your
eyes open and your antennae fully extended
Hers' the website which is the 2012 Marquet Study
on office theft.
http://www.marquetinternational.com/pdf/the_2012_m
arquet_report_on_embezzlement.pdf

I sincerely hope you'll look and think this over,
especially if your initial take is "This can't
apply to me." Believe me, it can.

Name Withheld

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