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To: Fishtalk
...an accounts payable employee stealing thousands of dollars.

This strikes a chord. I am a vendor for 3 very large corporations who are distributors. Two of them have the accounts payable staff from hell. Invoices are never paid on time. Checks are dated w/the date of the shipment received (once, it was dated prior to shipment). Envelopes are franked on a postage meter and have any old date they choose, or so seems, as the dates never match the actual time it takes in the real world to get from there to here. I only get paid on time when I am holding a second order for shipment and inform them I will not ship until prior invoices are paid. Net 30 accounts are guaranteed to pay in 59 days. Due on receipt accounts are guaranteed to pay in 29 days. The accounts payable folks have a list of excuses that are laughable (It is the post office; we are waiting for the authorization of operating funds; we couldn't read the invoice (Quick Books generated); we only have the name of your line listed, not the company name; it says in my computer the check was cut 3 weeks ago; I'll have to call you back/is this the party I spoke to last week?...) I know in one case, an entire department was fired. However, that company was subsequently sold to a huge international corporation that is closely held from overseas and from the day they took control, the same game began again.

A relative who has worked in accounts payable has intimated that this is a theft operation in action, but I actually didn't believe them. Guess I was naive and this is really common?
634 posted on 09/27/2005 4:40:45 PM PDT by reformedliberal (Bless our troops and pray for our nation.)
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To: reformedliberal
From what I read of your situation, I'm not certain there's theft going on from your delineation of events.

Frankly it sounds like these vendors are having cash problems. All of those excuses are basic Accounts Payable 101 excuses for why the bill has not yet been paid.

It's harder to steal from Accounts Payable then it is from payroll. First of all, there has to be someone ELSE involved in the scam.

The Accounts Payable department at the little hospital I worked for did manage to embezzle over 100K from the hospital. They did it through the hospital's system of what they called "patient refunds". Which is when the hospital cut a check for a "patient" that paid their bill in advance and the insurance paid the same bill later.

Some of the AP people got some friends' names and began issuing patient refunds to these friends. This also required cooperation from the patient accounting department as they had to approve patient refunds.

The AP friends cashed the checks in their own name then likely split the checks with the AP theives.

A department manager could easily put a ghost on the payroll. They could turn in all paperwork for an employee to the HR department. Somehow it could slip by. Just locate the people who don't do their jobs and make them your contact.

"Sally, I interviewed this nurse yesterday. She can't come in because she's on 24 hour shift at another hospital but I have all of her paperwork, including copies of her ID's. You know Doctor Bones needs an operating room nurse immediately so can you push through the paperwork so she gets paid?"

This is how most fraud gets committed. By thieves smart enough to find the holes in the system and by locating employees who are stupid.

Of course the employees' paperwork would request a direct deposit of the paycheck, said checking account provided owned by that very same manager.

Turn in timesheets every week and boom, a net paycheck gets deposited right into my account, very convenient.

The less people involved in a scam the easier to get away with it.

Of course there's a million ways my above scenario would not last forever. But hey, they rarely do. Extortions and scame are usually caught. It depends on the quality of the employees involved all around on how long it takes to catch them. The intent of these scams is not that they go on forever. Get the money and run is the logic.

If someone, somehow, doesn't notice timesheets submitted for employees never seen, or the Feds don't finally get around to notifying payroll that the SS# for this person is not valid, or some other employee stumbles upon the truth, well who knows, an entire city could get flooded with only ghost cops on patrol who then all conveniently abandoned their posts!

Yup, I think those ghost cops were assigned to cover during the Katrina aftermath because, a)no one expected the flooding and b)THINK OF THE OVERTIME!

It's how it works, ladies and gems. IT's how thieves think.

647 posted on 09/27/2005 5:28:11 PM PDT by Fishtalk (Pop Culture and Political Pundit-http://patfish.blogspot.com/)
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