Pub. 10 2015-2016 Issue 4

KBS Security Officer’s By-Word A teller at Bank A opened a personal account at Bank B and then wrote checks back and forth between that account and his personal account at Bank A. Each check was written and deposited to cover the check written the day before. Two weeks later the em- ployee deposited a paycheck and stopped writing checks between the accounts. Management reviewed the bank statements and discovered the activity. Upon questioning, the employee explained that the money was “just kind of borrowed” until payday because of a personal cash problem. Another employee wrote a Ca- shier’s Check to pay for her daugh- ter’s college tuition. She did not pay for the Cashier’s Check. The Ca- shier’s Check was honored by the bank and was still not funded. On payday the employee paid for the Cashier’s Check. The bank had already begun investigating a balancing problem with the Cashier’s Check account. Upon questioning, the employee explained that the tuition was due before payday, but that she paid the bank back as soon as she could. A bank president had funds wired from the bank to his broker without an offsetting debit to pay for the wire transfer. Two bank officers became aware that the correspondent account was out of balance and learned that the bank president had wired the funds without paying for the wires. Two months later the bank president borrowed money from another bank to pay for the wires. A bank employee signed as notary specifically declaring that a mort- gage was signed by both husband and wife in the presence of the notary. When the wife later claimed to have been out of town on the date of signing, the notary admitted that only the husband had signed in the notary’s presence, but he had assured the notary that his wife had signed the mortgage. A customer informed a bank officer that a bank employee had been caught shoplifting from his business. Upon questioning, the employee explained that she had returned the merchandise and accepted a criminal diversion program. The criminal charges had been dropped. A teller was seen putting money from her purse into the teller drawer. Upon questioning she explained that she was putting back the ten dollars she had taken so she would have cash for lunch the day before. THIS IS ARTICLE 6 OF 7 FRAUD IN THE WORKPLACES SERIES STAY TUNED FOR MORE Why Dishonest Acts Lead To Job Loss The bankers division of Berkshire Hathaway Homestate Insurance Company