Tag Archives: nonprofit

Equal Pay Day 2017

Equal Pay Day 2017 was yesterday, April 4, 2017.   All sorts of news stories have been posted, tweeted and blogged. As of now, it will take 169 years for parity in the work world.  But in the world of embezzlement and fraud I can tell you it is going to take even longer. Here are some statistics to get started.

Statistic #1-depending on the position, women have an even bigger glass ceiling. In 2016 women stole on average approximately .56 for every dollar stolen by a male.

Statistic #2-breaking it down by position and comparing male and female employees the women steal approximately .78 cents of a man. Comparing managers, the female managers steal approximately .84 cents. But the biggest variance is between owners and executives. This is where the men rule.  A woman will only steal, on average, .36 as compared to a man. Below is the link for the ACFE Report to the Nations 2016-see page 58 for gender:

https://s3-us-west-2.amazonaws.com/acfepublic/2016-report-to-the-nations.pdf

So what does that say? Anecdotally I will say that women are in “lesser” positions than men on average and therefore have more supervision. If you are a male owner/executive you are going to rob the company blind.   As it has been detailed before, audits do not catch fraud generally speaking. But more positions that are held by women have some internal controls: two signature authorization, limits on purchase cards etc.

Not getting political but Trump has just pulled back the 2014 Fair Pay and Safe Workplaces Act put in by Obama.  This is not going to help matters.

I just was in Philadelphia doing the closing keynote for the IIA Philadelphia.  I now have a survey card that I pass out to attendees.  Just through the initial assessment I will tell you that tips and alert lines are how many people get caught.  That has also been my personal experience.

When workers see something wrong they may say something.   When people don’t think the system is fair they may not speak out or worse they may neutralize their behavior and appeal to higher loyalties and possibly may resort to embezzlement.

Stay tuned for the analysis of the attendees.

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I am not a bad person

Bonnie Brannock Davis was a longtime volunteer for the Giles County Lifesaving and Rescue Squad. She also had a good paying, $120k per year, job at The Chemical Lime Company in Ripplemead until she was laid off.

She just was sentenced to two months in jail for a $65k theft from the Giles County Lifesaving and Rescue Squad. She was facing up to 100 years. She had no previous criminal history and had volunteered decades as a medic for Giles County Lifesaving and Rescue Squad.

She apologized over and over to the Giles County Lifesaving and Rescue Squad, which she called “the love of my life,” and to her family and the community at large.

Davis repaid the $65k to the non-profit. She stated that she made “anonymous” donations to repay over time. Davis told investigators that she had tried to repay the rescue squad by making anonymous donations. That is what many embezzlers do not understand. It is easier to steal money but much harder to replace the stolen funds. They may have intentions to repay but the mechanics of it are much more difficult to do. However, she did make 2 payments before sentencing to cover the $65k theft.

There was no “extravagant” spending on Davis’ part according to her attorney. I’ve seen this before. They start stealing because of a pressure and it snowballs. In this case Davis was a lifetime member of the non-profit.

People like Davis don’t wake up in the morning and say they are going to steal but at some point something triggers it. In Davis’ case the loss of a good paying job was most likely the trigger.

Davis is on LinkedIn https://www.linkedin.com/in/bonnie-davis-7b57b76 and from her information was a Deputy a long time ago. After she was let go it appears she started her own business which it seems did not replace her salary.

You just never know. Pay attention to your volunteers and their situations.

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Fraud Magazine Got Ink!

So excited to announce that Catch her if you can-Pink-collar criminals was printed in this month’s Fraud Magazine-Fraud Spotlight:

http://www.fraud-magazine.com/article.aspx?id=4294994705

Stay tuned for new material.  I spoke at the Spokane Chapter of the ACFE for their annual conference.  Lots of new stories daily.  Thank you for your support.  screen-shot-2016-11-04-at-2-06-02-pm

Graphic courtesy of Fraud Magazine-ACFE

 

 

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Non profit fraud Executive Director helped by twin brothers!

The former executive director of an East Orange-based non-profit developer of low-income housing was arrested today on charges she had embezzled more than $380,000 from the corporation, the Essex County Prosecutor’s Office said in a statement this evening.

Lancie Marchan, 64, who headed the East Orange Revitalization and Development Corporation, used the money for trips, hotel stays, visits to casinos and gifts, among other things, the statement said.

An indictment unsealed today alleges that Marchan, who was being paid an annual salary of $93,163.50, embezzled the money between 2005 and 2010.

At the time, EORDC was partnering with a private corporation to build a low-income development, called the Princeton Estates Phase II Project, with partial funding from HUD.

The indictment also alleges that Marchan’s twin 66-year-old brothers, Arthur Werts, of Chesterfield, Va., and Artemus Werts, of Plainfield – both of whom have experience in the financial and non-profit industries – helped their sister embezzle and launder the funds.

Marchan was arrested at her home in North Brunswick by officers from the prosecutor’s office and the U.S. Department of Housing and Urban Development.

All three are charged with conspiracy, theft by unlawful taking and financial facilitation of criminal activity. They could face up to 20 years in prison if convicted of the charges, the prosecutor’s office said.

Marchan is being held on $50,000 bail at the county jail. Her brothers have not yet been arrested.

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