Controller embezzles over $10 Million from Pennsylvania Acura Dealership
News reports indicate Partcia K. Smith, a controller at Baierl Acura, embezzled over $10 Million from the dealership over a span of six years that included over 800 fraudulent transactions. Here's a link to the news report - click here
In her position, Smith was responsible for balancing the dealership's accounts and had the ability to transfer funds between the dealer's various accounts. It's alleged she transferred money out of the dealer's operating account and placed the funds in a payroll account where she used the money to pay for items electronically. In the span of six years $1.8 Million was transferred to pay her American Express bill. Smith reportedly made about $53,000/year. While I've created numerous threads about dealership embezzlement cases in the past this is the largest sum of money I've ever heard about. Makes one wonder how a dealer could lose $10 Million over a period of six years and never even notice. :confused: |
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WHERE was management???? How could this happen?? I did see where a local dealer had $1M embezzled by a Comptroller, sould like a similar situation. I couldn't figure out how it happened to him. BUT $10 M??
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Trust........It will get you every time!
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I also read that the authorities think they'll only be able to recover $1 Million of the $10 Million that was embezzled. That means the person charged in this crime must have been living like a Rock Star if she could burn through $9 Million in that span of time. There had to have been a lot of people who must have been suspicious that something wasn't right. |
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$44,500 for Super Bowl tickets and hospitality pkg. $35,500 for a LUNCHEON for 6 PEOPLE...prepared by some food network star Yep...I think that qualifies as living like a rock star! I just wonder how she explained all her trips and extravagant lifestyle (4 homes) to the people she was working with? Guess she told them she inherited 10 million...;) |
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Is it easier to embezzle in an electronic age?
I read a comment following one of the reports I read about this case and the individual commented - "This is why you never allow the person who balances the accounts to have check writing privileges."
When I first read the comment it seemed like good advice that any prudent dealer would follow. But the more I thought about it, I don't think the employee in this case ever wrote a check - all of her transactions were done electronically. Which brings me to my question - Is it easier for an employee to embezzle from a dealership in our electronic age? My guess is that it's not only a lot easier to embezzle, it's also easier to hide the evidence and keep the embezzlement going for a long time. |
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I don't know anything about the dealer who owns the store but unless he runs a mega-store operation I doubt there are too many dealers who can afford to take a $10 Million hit and remain operational. |
She only got a 6.5 year sentence....
I was disappointed to read that Ms. Patricia K. Smith only received a six and a half year sentence for her crime. The sentence is near the top range for first time offenders who steal this amount of money.
The jail time doesn't seem like much of a deterrent to me. Here's a link to a local news report - I really liked the reporter's opening sentence - click here I also thought it was interesting that Baierl Automotive issued a statement that there "were no adverse impacts to our daily operations" as a result of this crime. It must be nice to be able to lose $10 Million and continue business as usual. :rolleyes: |
Probably just fired all the managers who knew what they were doing, cut the pension plan for other salaried workers, cancelled all loans from non officers, cut the pensioner health plan, turned the hourly pension plan over to the government, refesed to pay all the accounts payable where there was another vendor who provided the same service, all non transfer vendors were paid 33 cents on the dollar or go to h***, any account with a credit balance were reclaimed to zero, etc. But daily operations for the officers, salespersons, and customers were unaffected. SOUND FAMILIAR??
P.S. ALL DONE WITH A SMILE! |
http://www.autoblog.com/2012/06/21/w...nda-crosstour/
Explanation for money was... AIRLINE stocks. Is this an episode of Dumb & Dumber!? $4000 a day... 7 days a week... for SEVEN years. :parnoid: As I understand it... the CFO still has his job and the replacement hire for this woman is from the accounting company that handles the Baierl stores. :roflolk: |
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