“The most common cases are probably basic
embezzlement frauds, where employees are steal-ing
from their employers,” Mincey says. “It can be
as simple as an employee working the cash register,
skimming a dollar or two throughout a shift. Or it
can be an elaborate scheme to divert money away
through fake services and kickbacks.”
Embezzlement requires that the money stolen
must have come into the offender’s possession due to
the relationship of trust, and the offender must have
intentionally and fraudulently stolen the money or
property.
That happened at the University of North
Carolina Wilmington’s School of Social Work during
the 2016-17 school year, when a student leader was
caught stealing $4,500 from a bank account belong-ing
to a student group.
The embezzlement was discovered when the stu-dent
overdrew the account.
“There was anger against the student for doing
it, then concern for the student. Why would she do
this?” says Stacey Kolomer, director of the School
of Social Work. “It was an interesting experience.
Talking to campus police, they said, ‘You are not the
first one.’”
The student paid back the money as part of a
plea bargain to reduce the charge from a felony
to a misdemeanor. The student club had its funds
restored, but the embezzler has a permanent scar on
her record.
“Some people might have felt very betrayed by it,
but my bigger concern is, why would someone jeop-ardize
their future for something so little?” Kolomer
says. “For $4,500 she’s made it almost impossible to
get a job now.”
While typical embezzlements involve small
amounts, occasionally an offender steals a large
amount before being caught. The larger cases,
especially when they involve local businesses, often
receive media attention.
One such case involved Guy Robert Williams,
who pleaded guilty to 17 counts of embezzlement in
December 2015 and was sentenced to several years
in prison for stealing more than $400,000 from
Wilmington Plastic Surgery. He used the money for a
birthday party for his daughter on Bald Head Island,
home renovations, and vacations.
Coleman, the county’s lead Superior Court pros-ecutor
for financial crimes, recalls the case.
“We believe that more may have been taken, but
simply could not prove it, so it was not part of the
ultimate plea arrangement,” she says.
Proof of embezzlement is often elusive, making
these cases challenging to prosecute.
“More than one person may have access to the
money and the business may not have a system in
place such as cameras, clear deposit records, etc.,”
Coleman notes. “We must prove how much was
taken, how it was taken, how we know it was this
defendant. That requires bank records, business
records, all of which are often difficult for non-business
people to understand and difficult to present
as evidence. And often businesses are reluctant to
provide their records, as it might disclose proprietary
information that they do not want accessible to the
public. Once a document is introduced into evi-dence,
it becomes public record, and many businesses
are not comfortable with this concept.”
Wilmington Plastic Surgery was vocal about the
case at the time, urging businesses to take preven-tive
measures and to be proactive if they suspect an
employee is stealing. But often, embezzlement vic-tims
are reluctant to discuss their experiences.
“The victims are embarrassed by what has hap-pened,
and don’t want their plight to be publicized,”
Coleman says.
In addition to embarrassment, businesses risk
eroding client confidence by coming forward.
Law firms, real estate agents and companies,
banks, and other businesses entrusted with others’
money have a higher stake. The bodies governing
these professionals take a harsh stand against them
when money held in trust is improperly appropri-ated.
The liability is strict, and the fact that crimi-nals
victimized them is irrelevant. Attorneys can be
disbarred for the criminal actions of their employees
against their client trust accounts.
The law firm discussed earlier was fortunate. Even
though the culprit in the case had access to the cli-ent
trust accounts, she knew not to take money from
them.
Embezzlement can involve misappropriation of
property other than funds. Such was the case of
Meghan Elizabeth Shuford, a nurse who was arrested
in 2016 and charged with stealing controlled sub-stances
from New Hanover Regional Medical Center.
“People who do these types of crimes are smart
and ingenious,” Coleman says. “I know of one case
where a local law firm had an employee stealing large
amounts by use of a postage meter.”
Any business or employer can be at risk for
embezzlement.
“Wherever there is money changing hands,
humans will be tempted to steal it,” Mincey says.
Embezzlement
damages so
much more than
the bottom line.
It is a betrayal
of the sacred
trust between
employer and
employee. In
small busi-nesses,
it can
feel like being
betrayed by a
trusted family
member.
36
WBM february 2018