$2.1M Embezzlement...Possible Murder...Then Suicide

Be careful business owners and executives!

Here's another example of alleged fraud in the workplace. According to a 4/23/08 article in The Atlanta Journal-Constitution online newspaper,

"An accountant who killed himself after police questioned him in the disappearance of two wealthy clients had embezzled $2.1 million from the couple and seven companies, his former employer said. An audit ordered by The Club Group found that chief financial officer Dennis Gerwing took money from its clients for four years, depositing it into a hidden checking account, the management company said Tuesday. Gerwing committed suicide March 11 after investigators questioned him about the disappearance of John and Elizabeth Calvert, who split their time between a yacht on Hilton Head Island and a home in Atlanta. The couple were last seen in early March, and searches of the resort island, its harbor and in Georgia have been fruitless. Police have said Gerwing, 54, was the last person to see the Calverts." Read the full article

While an extreme example, this situation should be a serious reminder of how vulnerable organizations can be to misappropriation of cash and other assets. For tips on how to deter/prevent workplace fraud...read the "How to Nab the Rogues: 10 Fraud Tips" article in CFO.com.