Embezzlement – Nonprofit

SITUATION

FSS investigated allegations of misappropriation of assets and excessive spending by an employee of a federally funded nonprofit organization with reporting responsibilities to the Office of the Inspector General.

STRATEGY

Through the use of advanced data analytics and the analysis of transactional data, the investigators identified:

  • The use of company credit cards for personal benefit and the payment of personal expenses through expense reimbursements.
  • The unauthorized payment of additional payroll to the employee and her assistant.
  • The alteration of supporting documentation to conceal the inappropriate activity.
RESULTS
  • FSS prepared and presented its findings to a representative of the Inspector General’s office.
  • The employee plead guilty to the misappropriation of assets and was sentenced to probation and required to pay restitution.