control, and governance
SIPHONING CFO GETS CAUGHT IN AN 8-YEAR FRAUD
The chief financial officer (CFO) for Chesapeake Petroleum and Supply Inc. has pleaded guilty to embezzling more than US $2.7 million from the Maryland-based company, according to a recent article published in The Gazette. In a statement, the U.S. Attorney’s Office for the District of Maryland said that the CFO — employed by Chesapeake Petroleum for 30 years — authorized and signed company checks made payable to himself and to the bank that held the mortgage to one of his properties. The executive also stole thousands of dollars from the company’s petty cash fund, according to the statement.
How could the embezzling CFO’s activities been detected earlier? Could this fraud been avoided altogether? What can internal auditors learn from this situation that will help them remain vigilant for future fraud schemes?
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