Prior knowledge of an employee previously committing a dishonest or fraudulent act, or theft, can impact on insurance coverage.
Ms. Stephanie Pratt of Hinsdale, New Hampshire allegedly misappropriated $10,000 from her previous employer. After being released from jail, Ms. Pratt was hired as the office administrator at a new employer and had full access to the new employer’s bank accounts and credit cards. Ms. Pratt allegedly stole $492,325.34 from her new employer.
Ms. Pratt allegedly cashed unauthorized checks to herself and entered them as payments to legitimate vendors in the company’s accounting system and used the company’s credit cards. The fraudulent purchases included NFL tickets for Tom Brady’s return to Gillette stadium and over $50,000 in additional purchases such as a hot tub.
Ms. Pratt claimed the owner had her cash the checks for the owner’s son not knowing the son had already passed away. Ms. Pratt also allegedly edited the company’s credit card statements to delete unauthorized purchases stating it was to make the statements “easier to read”. She also claimed her company credit card purchases were from clicking the wrong button at checkout. Upon her termination Ms. Pratt demanded the owner’s widow pay her a Christmas bonus.
It is important to discern if the impacted insured had prior knowledge of Ms. Pratt’s misappropriation at the previous employer and, if so, why she was placed in a position with access to company funds. This unfortunate scheme likely could have been prevented through proper employment screening.
Former Keene woman sentenced to prison for stealing almost $500,000. (2024, November 13). https://www.justice.gov/usao-nh/pr/former-keene-woman-sentenced-prison-stealing-almost-500000-her-employer
Photo by www.kaboompics.com
