Reference no: EM133197912

Defalcations:

1. The treasurer of a small NGO also managed the NGO's pension fund. Over a period of a few years, the treasurer diverted a substantial amount of the fund's earnings to his personal use. Most of the money was invested in money market funds and certificates of deposit. To cover the diversion, treasurer systematically underrecorded income earned.

2. The purchasing agent of a company set up a fictitious vendor and periodically prepared purchase orders to the fictitious vendor. The agent then created bogus receiving reports and sent the receiving reports, vendor invoices, and purchase orders to accounts payable for processing. The fraud amounted to P125,000 a year for a company with approximately P12,000,000 in annual sales.

3. The social services workers of a Province agency set up fictitious files for welfare recipients and paid them monthly support. Because the recipients were fictitious, the social services workers collected the checks . and deposited them into a bank account and then transferred the amount to the accounts of the fraud perpetrators. All of the records are kept on computerized files.

4. A purchasing agent systematically paid higher-than-market prices for goods received from an important vendor. In turn, the purchasing agent received various perks from the vendor and kickbacks that amounted to more than half of the purchasing agent's regular annual salary.