Being a bookkeeper is a position of high trust.
Some individuals abuse that trust. For small businesses especially, employee fraud can cause significant damage and financial losses. Such was the case with Ms. Emile K. Rueda. While employed as a bookkeeper between September 2018 and February 2020, Ms. Rueda allegedly misappropriated funds in excess of $650,000.00 in unauthorized purchases.
Mr. Justin Campbell, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Chicago Field Office, said, “Individuals entrusted with their employer’s finances are held to a higher ethical standard because their actions can have a significant impact on the financial health and reputation of their organization.”
This can be seen in the alleged misappropriation of company funds by Ms. Rueda on personal affects such as antique jewelry, dolls, trinkets, and other items. In this case, Ms. Rueda allegedly created false entries into the business’s books to conceal her theft. The theft was discovered after further investigation into a bounced employee paycheck.
Having multiple forms of reconciliation could aid in preventing success in schemes similar. The chances of an individual concealing a scheme are less when the duties of accounts are separated and can be confirmed by others. Implementing internal controls that allow for transparency are paramount to discouraging potential employee theft.
Former bookkeeper sentenced to federal prison for embezzlement and fraud. (2024, February 14). https://www.justice.gov/usao-edwi/pr/former-bookkeeper-sentenced-federal-prison-embezzlement-and-fraud
Photo by Gizem Gökce
