Premium Essay

Fraud at Samone

In: Business and Management

Submitted By swkesto
Words 1171
Pages 5
Fraud At Samone Enterprises

Fraudulent activities were revealed at Samone Enterprises in which a payroll clerk, Cindy White, embezzled more than $194,000 in 5 years.

Samone Enterprises is a packaging products and services company. Cindy White worked for Samone for almost 10 years as a payroll clerk. White worked in a small department and was accountable for payroll for about 250 employees who worked different shifts 24 hours a day, 7 days a week. Since Samone used a clock-in system to track payroll, employees forgot to clock in or out constantly, so they needed to complete a missed clock report in order to get paid for unrecorded hours. Manual paychecks were used to adjust underpayments to employees. The manual paycheck system was simple; a manager would fill out a manual paycheck request, submit it for approval to Patricia Gonner, the HR manager, and White would process the check. Everything seemed to be in order because White would try and process the checks and get them to employees within 48 hours. In addition, each department manager was required to review the payroll expense reports for accuracy twice a month.

The business unit controller at Samone, Joe Burke, found a stack of manual paycheck request forms on White’s desk one day when she was out of the office. Burke had a hunch that something fishy was going on so he selected a few manual paychecks to test and he found some patterns that brought up concerns of fraudulent behavior. Burke asked internal audit to conduct an investigation of all manual paychecks processed in White’s business unit. They discovered that in the last 5 years, 60 percent of the manual paychecks processed were fraudulent payroll request forms created by White with Gonner’s forged signature. Internal audit confirmed that White had created the manual paychecks, forged the payee signatures, and signed her or her...

Similar Documents

Free Essay

Managing Across Cultures

...PEOPLE OF THE PHILIPPINES, appellee, vs. CARMELITA ALVAREZ, appellant. D E C I S I O N PANGANIBAN, J.: In illegal recruitment, mere failure of the complainant to present written receipts for money paid for acts constituting recruitment activities is not fatal to the prosecution, provided the payment can be proved by clear and convincing testimonies of credible witnesses. The Case Before us is an appeal from the January 28, 2000 Decision[1] of the Regional Trial Court (RTC) of Quezon City, Branch 93, in Criminal Case No. Q-94-58179. The assailed Decision disposed as follows: “WHEREFORE, the foregoing premises, the court finds the accused CARMELITA ALVAREZ guilty of Illegal Recruitment committed in large scale constituting economic sabotage. Accordingly, the court sentences her to serve [the] penalty of life imprisonment and to pay a fine [of] P100,000.00. She is further ordered to indemnify the following complaining witnesses in the amounts indicated opposite their names: Arnel Damian P 16,500.00 Joel Serna P 18,575 plus US$50.00 Antonio Damian P 6,975.00 plus US$50.00 Roberto Alejandro P 47,320.00”[2] The July 18, 1994 Information[3] was filed by State Prosecutor Zenaida M. Lim. It charged Carmelita Alvarez with “illegal recruitment committed in large scale,” under Article 13(b) in relation to Articles 38(a), 34 and 39 of the Labor Code of the Philippines, as follows: “That sometime between the period from November, 1993 to March, 1994, in Quezon City,......

Words: 4806 - Pages: 20