Bookkeeper plays “hide and seek” with company’s bank records
Bonnie Denning didn’t want the owners of Easy Picker Golf Products to see the company’s bank records, and now we know why! Over the course of less than 12 months, Denning alledegly embezzled $818,339.37 from the Lehigh Acres company using wire transfers, a debit card linked to the company’s accounts, and one check (I suspect that there will be more fraudulent checks uncovered in due time).
Here is a break down of the loss:
60 Debit card transactions – $411,387.00
Alledegly used to used to buy clothes, gas, electronic goods and home furniture.
54 wire transactions – $358,885.50
Alledegly included $4,799.58 to purchase granite for Denning’s home and $29,160.00 associated with a drug rehabilitation program for a relative
1 check – $5,295.76 for shutters for Denning’s home
Total loss – an eye popping $818,339!
Here are some lessons learned:
Denning refused to turnover the company’s bank records to the owners. In fact, the owners had to request the statements directly from the bank! That is a GINORMOUS red flag. Never, I repeat never give your bookkeeper sole custody of your company’s bank records.
The bank issued a debit card to Denning apparently without the knowledge of the owners. I’ll leave it up to the owners and the bank to decide who is at fault here; however, as I have said before, relying exclusively on your bank to prevent embezzlement is a losing proposition.
Engaging a bookkeeper should never result in the the owners abandoning oversight of the financials. To the contrary, owners must stay engaged and ensure that the bookkeeper compiles the results in an accurate and efficient manner. Put simply, not paying attention can cost you dearly.
I sincerely hope that the Easy Picker Golf Product Company can survive this catastrophic loss. I can only imagine how the owners must feel.
As this case develops, I’ll keep you posted.
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