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.
Thursday, June 15, 2006
Crime doesn't Pay
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