Posted on: August 6, 2019

Addiction a driving force behind some embezzlement cases


Bad intentions aren't always the source of embezzlement. In some cases, addictions, such as gambling, can be at the root of financial misconduct, and in these instances, audit solutions can be important to the recovery of more than just a business.

According to the Creve Coeur Patch, a former Maryland bookkeeper, Karen Page, was sentenced to five years in prison for the theft of $234,000 from her previous employer, insurance underwriter J. Berg & Associates. She stole the money over the course of three years, writing herself unauthorized checks from the company and depositing the funds in her personal account. 

The source noted that Page's crimes were driven by a gambling addiction, which her past employer hoped she would get help for instead of jail time. However, she was unable to commit to paying restitution.

The Post-Crescent recently pointed out that gambling addictions are one of the more common causes of embezzlement. In Wisconsin, there are many gaming opportunities, which could exacerbate the problem, Bob Pederson, a business owner who weathered such a theft totaling $500,000, told the source. 

"I wasn't completely aware of the nature of intensity of what goes on with gambling addictions," Pedersen said. "It's a big issue. And a lot of people are into some pretty deep water."

In some cases, using audit solutions can get everyone back on the right track. Pederson has been able to recover most of his missing funds, but beyond that, addicts may be able to get help as a result of being caught.

Errors add up. Learn the true cost of these mistakes, as well as best practices to reduce and recover losses in our guide.

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