The Expert Podcast

…Same type of scam would a little bit different twist Here's a case from Oregon. Where a company was defrauded by an employer. I'm sorry an employee and a vendor. And this happens to be a grass seed company Believe it or not, Oregon is a big state for grass seed farms You can…see very large operations that sell grass seed all over the country. And what happened here was an employee in this company allegedly.

Created a relationship with a vendor to buy and sell grass seed but they were pulling some off on the side They were skimming from the operation And this is how fraud happens over your business owner Here's how you can prevent this from happening. What they did was the two parties involved allegedly would pay a per pound kickback for grass seed purchased by the other company. The kickbacks are built into the prices on the invoices So they were overpaying and then kicking the money back. And what they did was they help register a separate business entity through which the.

Kickbacks we're called consulting or brokering. And. Look the guy's already an employee the sales person of the company. And he was saying that there's this brokerage company.

Doing consulting for this transaction. That's where the money came back in. And the parties that were involved with this allegedly were the employees of these two companies that were skimming money off the top. So if you are. An owner of a company or general manager of a company.

You have to look for these large transactions to see if there's any diversion of. If you see a management company. A.

any vendors on your, accounts payable on your P and L you want to look at the principles of these companies to see are the your employees that are billing separately. Are they ghosts companies that are billing separately Look up the address. is it a mailbox? Look up the principals the members of this LLC when was the LLC formed? Because all of these types of scams are very easy to detect Normally they're detected after the fact.

the money's missing and, and the company is worried about where you know how come they're not staying in business. But they always could have been detected ahead of time All the records are there, it just putting too much trust in one person have cross. training to have two people do accounting two people do payables, have your accountant be forced to take a week a week off for vacation So somebody else has to do their job, make sure other people look at all these records If you can't yourself as a CEO, this is how you detect fraud and make sure that your company is not losing money. All these fraud cases that we do. After the fact we always find that it was easily detectable by the agency.