Student

Read an Unholy Trinity. Focusing on the case of Bill Guardo. In a blog post, discuss the kind of larceny scheme Bill Guardo committed and how he was able to avoid being caught.

Bill Guardo served the consumer loan finance company as branch manager given the responsibility to prepared and make bank deposits. The opportunity of fraud exist in most cases from weak internal control system. In most cases, fraud is perpetrated because someone has the motive to satisfy his wants and needs. Giving one individual more authority to write checks, review checks and make deposits without anyone else reviewing and signing on them serves as a prime opportunity (Albrecht, et al, 2012). Once the motivation and pressure is establish, a method is put in place called opportunity. Bill Guardo position provided a lot of opportunity for him to commit fraud because there was no separation of duties. Bill Guardo fraud represents cash larceny and theft from deposits. Cash larceny is the felonious stealing, taking and carrying, leading, riding, or driving away with another person’s property with the intent to convert it or to deprive the owner (Wells, 2012). Cash larceny scheme can take place in any circumstances in which an employee as access to cash. (Wells, 2012). It is unknown for how long Bill diverted funds from his employer. However he was able to avoid being caught because there was not any separation of duties. As a branch manager, he had the authority to generate information of cash payments and at the same time routed those financial information as bank deposits solely deposited by him. Bill fraud was not difficult to uncover basically because cash stolen were already recorded in the company’s books. There is no way Bill would have committed this fraud for so long except general audits were not a part of the company’s policy.

Explain your answer. How could this scheme have been discovered?

Bill Guardo fraud scheme could have been discovered from a simple audit since no one else...