It is being reported that the former finance manager of Rodeo Austin embezzled 1.3 million dollars from the not-for-profit organization. An investigation revealed that routine budgeting and accounting systems were overridden by the finance manager. It is also being reported that there may be a recovery of some of the funds leaving an estimated loss to the organization of approximately $800,000.
It is a statistical fact that in most all embezzlements, three factors are present. Opportunity, rationalization and pressure. They are commonly referred to as “the fraud triangle.” Opportunity allows an employee to carry through with a theft, rationalization is the employees ability to justify their actions and finally, pressure is the motive for the theft.
If you suspect that your organization may be vulnerable to this type of activity, telephone one of our investigators to discuss how TransTex can assist you in designing and implementing sound internal controls to help reduce the risks of your organization becoming a victim.