Women and husband cause Wisconsin firm to file Chapter 7 bankruptcy.
What can be learned from this most recent case right here in Wisconsin?
Make sure that related parties are not in control of company assets. Sometimes that could even include family members of the business owners.
Accounting transactions should not be able to be altered by accounting personal within the computerized accounting system.
See this post from 2012 another case of computer system manipulation right here in Wisconsin.
Have two signatures on checks and review invoices to check register.
Look for red flags that employees may be showing i.e. living beyond their means.
Costs always exceed the lost assets and/or money. Additional costs include forensic investigation, attorney fees, disruption to business, anxiety and distress, loss of business valuation or even loss of the business and lost opportunity costs.
I have to ask this question: Would it have been beneficial for this business owner to spend $20,000 to have a comprehensive fraud risk assessment done for his business several years ago?
It will be almost impossible getting the $300,000 + back from the convicted fraudster let alone the $750,000 awarded as a judgment.
Does anyone see the irony here? A company that sells security systems and vault for their customers to protect their assets fails to protect their own assets by have adequate security for their accounting systems.
link to original Journal/Sentinel article here:wl