The highest-risk employee: Skimming revenue, part one

A city clerk/treasurer supervising cashiers misappropriated $800,000 over an eight-year period of time by laundering local improvement district payments through the daily bank deposit. While a stand-alone computer maintained account balances for citizen accounts, it wasn't used for billing purposes. The supervisor sent manual statements to citizens each year billing them for current period assessments only. The city didn't foreclose on delinquent accounts. The fraud was detected during verification procedures for a new bond issue. She was sentenced to 8 1/2 years in the state penitentiary.

A supervisory account clerk of a water utility district misappropriated $357,000 over many years by laundering miscellaneous revenue from the sale of a vehicle and operating a lapping scheme for customer payments in an accounts receivable system. This supervisor received all customer feedback and circumvented internal controls to conceal this activity from managers. The fraud was detected during a routine audit. The supervisor was sentenced to 2 3/4 years in the state penitentiary.

A hospital supervisory cashier misappropriated $213,000 over many years by laundering unrecorded revenue checks from sources throughout the hospital through the daily bank deposit. The fraud was detected during a routine audit. The supervisor was sentenced to one year in the state penitentiary.