Forensic Accounting and Fraud Examination, 2nd Edition

5Cash Disbursement Schemes

Founded in 1863, La Salle University is a private, co-educational, Roman Catholic university located in Philadelphia, Pennsylvania, United States. In 2010, Stephen Greb, a former La Salle University official was charged with funneling more than $5 million in school money through a bogus company he set up.¹

According to the Daily Times News (10-26-2010), Greb had been the school’s director of auxiliary services, including oversight of food services and on-campus catering, until officials at La Salle fired him in June after they discovered the scheme. Operating the scheme over twenty years, authorities alleged that Greb had set up a fictitious food company through which he authorized payments from the school.

According to NBC 10, the fake company was discovered after the university began using an enhanced invoice-control system. After being tipped off, university attorneys and a forensic accounting firm led an investigation into the scheme.²

According to news reports, Greb faced charges including theft, forgery, and tampering.

In this chapter, the authors will examine the topic of stealing cash through fraudulent disbursements. Those modules, along with the learning objectives, include the following:

• Module 1 examines billing schemes. With billing schemes, the fraudster uses false documentation to cause the organization to issue a fraudulent payment. The objective of this module is for the reader to be able to describe billing schemes, as well as ...