So this long-term Seattle Public Utilities employee stole a million by depositing checks intended for the city into his personal account. Read closely to count how controls failed–the city allowed the employee to issue invoices and accept payments directly, developers/property owners didn’t realize their checks were going to a “City of Sea” account set up by the employee in a bank whose own controls seem to have been lax. One thing fraud investigators should look for is spoofing nomenclature, bogus accounts and phantom vendors indicating that individuals may be redirecting organizational resources to themselves.
It’s a old story in non-profit organizations. Charismatic leader reigns for decades largely unfettered by the volunteer board of directors duly impressed with the public monies rolling across the non-profit’s governmental interface that the CEO seems to be working so well. Well, according to prosecutors in this case, much of what was greasing the wheels was illegal and many pockets, not the least of which was the CEO’s, were allegedly being stuffed with cash.
So, respected Japanese money management/investment firm can’t find most the $2.6 billion it’s handling for various pension funds. Japanese regulators think maybe the rules aren’t strong enough. Can’t wait to see how U.S. deregulation zealots react to such heresy, once they come up for air after torpedoing any sensible financial regulation here. http://www.nytimes.com/2012/02/25/business/global/japan-orders-aij-investment-advisors-to-suspend-operations.html