FSS investigated allegations of misappropriation of assets and excessive spending by an employee of a federally funded nonprofit organization
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: The FSS investigators followed the money trail through the accounting processes and identified two schemes:
- Analysis of transactional data revealed a skimming scheme of cash regularly being removed from the daily deposit.
- Advanced data analytics of the transactional data revealed a fictitious disbursement scheme whereby the accounting clerk was paying personal credit cards disguised as expenses of the medical practice.
Based on initial findings, an admission seeking interview of the accounting clerk was conducted.
- The target of the investigation confessed to FSS investigators of her skimming of cash and making fictitious disbursements. The target provided a detailed written statement acknowledging the inappropriate activity.
- The FSS investigators prepared a proof of loss for submission to the insurance carrier. The client was awarded the loss limit of the fidelity bond.
- The FSS investigators presented evidence of wrong doing to local law enforcement. The suspect was indicted based on these findings.
- The scope of the investigation was expanded to show the continuance of the schemes for seven years with losses in excess of $500,000. All findings of the continuing schemes were presented to local law enforcement.