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Old 05-08-2012, 10:26 AM   #1
XDCX
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Default 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.
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Old 05-08-2012, 01:25 PM   #2
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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.
My thoughts exactly...talk about well capitalized ! She was siphoning off $139,000 a MONTH on average for 10 years and nobody noticed the cash drain??? You'd have to be making a hell of a lot of net profit to cover that up!
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Old 05-08-2012, 02:28 PM   #3
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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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Old 05-08-2012, 03:17 PM   #4
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Trust........It will get you every time!
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Old 05-08-2012, 03:35 PM   #5
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Originally Posted by XDCX View Post
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
Go to this article and read the comments following........and we wonder why people don't believe there is 21 bucks margin on a Dart?
.

Last edited by XDCX; 05-09-2012 at 12:05 PM. Reason: Fix quote tag
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Old 05-09-2012, 12:11 PM   #6
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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??
I agree, $10 Million's a huge amount of money for a dealer to lose to embezzlement. The report did indicate the controller altered inventory reports, but unless the dealer was self-floored you'd think the fraudulent adjustments would be caught during a flooring audit.

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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Old 05-09-2012, 12:18 PM   #7
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Go to this article and read the comments following........and we wonder why people don't believe there is 21 bucks margin on a Dart?
.
That's a great point. Stories like these just feed the public impression that car dealers are swimming in profits and they're making thousands on every car deal.
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Old 05-09-2012, 03:20 PM   #8
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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.
$1.8 million for private jet charters
$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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Old 05-10-2012, 11:27 AM   #9
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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...
There must have been a lot of people who knew something wasn't right but maybe they decided to look the other way since they were benefiting from this crime.
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Old 05-10-2012, 11:33 AM   #10
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Default 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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Old 05-11-2012, 08:34 AM   #11
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I just wonder how she explained all her trips and extravagant lifestyle (4 homes) to the people she was working with?
It's worse than that! Time and again this individual was on the showroom buying vehicles for herself AND her relatives. Explain to me how an employee in YOUR office can be directly/financially tied into several car deals each and every year... and no one (inc. managers) questions where the money is coming from. Amazing story around here... and all the little pieces involved that aren't making the news.
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Old 05-14-2012, 09:21 AM   #12
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It's worse than that! Time and again this individual was on the showroom buying vehicles for herself AND her relatives. Explain to me how an employee in YOUR office can be directly/financially tied into several car deals each and every year... and no one (inc. managers) questions where the money is coming from.
Exactly - it's almost like she was trying to get caught. (It reminds me of a serial killer who enjoys toying with the cops just to show off his intellectual superiority.)

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Amazing story around here... and all the little pieces involved that aren't making the news.
Given the magnitude of the embezzlement I bet there are a lot of details that never made the news.

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.
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Old 05-14-2012, 04:19 PM   #13
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Angry 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.
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Old 05-15-2012, 02:02 PM   #14
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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!
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Old 06-22-2012, 08:18 AM   #15
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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.

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.
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