A former employee of a New England college misappropriated student funds for personal use through a variety of schemes. The college was alerted to the alleged fraud by another employee, and determined that “red flags” may have been ignored. Counsel representing the college contacted our experts to conduct a forensic investigation in order to determine the nature and extent of the alleged fraud.
The investigation began immediately after our experts made an initial call to identify and gather documentary and electronic evidence. We then conducted investigative interviews of several key employees. Our team uncovered bogus vendor accounts, and a myriad of unusual and layered online payment systems. We also uncovered and quantified a side mini-money-laundering system that converted student funds into cash by purchasing and reselling prepaid gift cards. Our experts revealed that the true recipient of the diverted student funds was a then current college employee. Our investigation focused on a particular dataset of business documents, bank records, and email correspondence. We quickly determined the nature and extent of fraudulent activity, while also keeping costs to a minimum. We communicated our findings and recommendations for control improvements in a timely, clear, and concise manner.
Our team prepared a written report summarizing the detailed findings of the investigation. The results led counsel to discuss potential criminal prosecution with the District Attorney. The client ultimately terminated some employees, and sought fraud charges against one former employee.
For additional information about this or any related topics, contact Elisabeth da Silva, CPA, CFF. Elisabeth is a Partner in the Forensic Accounting practice at DGC, and can be reached at 781-937-5792 or firstname.lastname@example.org.