Friday, March 14, 2008

The Fraud Triangle: Opportunity + Pressure + Rationalization

One of the things we teach prospective principals at UK is how to safeguard funds through sound fiscal controls. It requires teamwork and shared duties.

Embezzlement is an inside job committed by a trusted employee who is knowledgeable about school business affairs. They exploit their knowledge for personal gain. Like all economic crime it is premeditated. Offenders usually steal again. This “white collar” crime is rarely reported. Even when it is, charges are not always filed.

One sign of fraud: Being caught on video stashing the loot in your pocket.

This from the Cincinnati Enquirer:

Police: Principal caught on tape

INDEPENDENCE – Clint Green was fired as principal of St. Cecelia School here after he was caught on video pilfering cash from collection baskets, authorities confirmed Friday.

“The weekend of March 1-2, (Green) was taped taking cash from the collection baskets,” said Independence Police Capt. Tony Lucas, spokesman for the department.

Kenton County and Independence police installed cameras in the parish rectory after Father Mario Tizziani, the parochial administrator, found what he described as “discrepancies” between parish donation records for 2007 and the amounts that parishioners claimed they’d donated, the Covington diocesan newspaper, The Messenger, reported Friday.

On March 3, the school fired Green, a 33-year-old Fort Mitchell resident, who had been hired as principal in 2006 after teaching at the school for two years.

“In the video, it appears that that (Green) was holding envelopes up to the light to see whether they contained a check or cash,” said Lucas, who is also a member of St. Cecelia’s parish.


Envelopes that appeared to hold cash went in Green’s pocket, the video indicated, while those with checks went back in the collection basket, Lucas said.

“It has been brought to our attention by members of the (St. Cecelia) finance committee that restitution of $3,000 has been made,” Lucas said Friday. “Arrangements are being made to collect further amounts.”

No charges have been filed against Green, who Lucas said has been “very cooperative.”

Felony charges can be brought for crimes involving theft by unlawful taking of $300 or more....


Photo: Video and a copy of a letter to parish at KyPost.com.

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