Thursday, June 15, 2006

Crime doesn't Pay

This article in baseline on Procurement Fraud has just been slashdotted.

But one point that really hit me in this particular case, the executive who ran the fraud received $25,000 in cash some number of times, an SUV, other gifts. The total haul was possibly as much as $100-$200K.

After being detected the exec was fired and lost a position that paid that amount each year and lost stock options worth $900,000. He is also facing a criminal trial and there is very little chance he will work for a public company in that type of position again.

There seems to be a compulsive element to these types of fraud. Recently a member of the cabinet was charged with shoplifting $3,000 worth of goods from Target using a refund fraud scheme. He certainly didn't need the money. Some suggest it was a response to the stress of holding that type of job. I suspect though that it is the need to take risks that is compulsive - similar to the compulsion that drives the gambling adict.

No comments: