Tuesday, April 3, 2012

Term Tuesdays - Employee Fraud

Employee Fraud - when an employee knowingly steals from the company.

Example provided by a former coworker

Here is a story from the 1980's. 
A carrier was paying sales guys up front for sales and one day an installer called me in Houston and was concerned about a new installation. 

The location was an empty field and in the middle of the field was a telephone pole with 25 66 blocks. The installer said he counted 50 lines terminated to this 66 block. So I told him to reject the order back to us and we would handle it.

I contacted the VP of Sales and he contacted the Legal Department. 

There where five  (5) sales guys that where fired, but not sued. Their names were given the the IRS for all the money they stole.