A former CFO embezzled in excess of $445,000 from her
not-for-profit employer. Although the DHG Forensics group routinely
encounters situations like this one, the method she employed made
this particular case unique.
The office environment was small, but segregation of duties was
enforced. The former CFO was not an authorized signer on the bank
account, and a separate payables department handled the processing
of checks for payment. Even with these controls in place, she was
still able to embezzle over $445,000 through a fraudulent check
disbursement scheme.
Although fraudulent check disbursement schemes are not uncommon,
it was unusual that every check she embezzled was made payable to a
legitimate vendor of the NFP. In order to facilitate her scheme,
she secretly obtained blank check stock from the CEO's office.
She then generated checks to legitimate vendors for relatively low
dollar amounts. Of the approximately 400 fraudulent checks that
were written, the
