Corporate Fraud Handbook, 5th Edition

CHAPTER 5Check Tampering

Case Study: A Wolf in Sheep's Clothing

Melissa Robinson¹ was a devoted wife and the mother of two adorable children. She was very active at her children's school and was known as a charitable person, giving both her time and money to various organizations throughout the community.

She spent a good portion of her time working for a worldwide charitable organization chapter in Nashville as the executive secretary. In fact, her fellow employees and club members perceived Robinson's donation of time and hard work as nothing less than a godsend. “Even if somebody had told [the board of directors] that this lady was stealing,” recalls Certified Fraud Examiner and CPA David Mensel, also a member of the organization, “they would have said ‘Impossible, she'd never do it.’”

However, all these accolades could not obscure one cold fact: Melissa Robinson was a thief. As executive secretary, she was one of two people in the organization allowed to sign checks on its bank accounts. As a result, the club was bilked out of more than $60,000 over five years, until club members put an end to Robinson's scam.

The Nashville chapter of the organization was very much like other charitable entities—they engaged in fund‐raising activities, such as selling peanuts or candy bars on street corners around the holiday seasons. Although a percentage came in check form, most of the ...