Felon Fabricated Fabrics

Watch for the internal threats

A Florida woman was recently sentenced to 10 years in federal prison for wire fraud and money laundering after orchestrating a six-year scheme to embezzle over $4 million from her employer, a textile and apparel supply company. The former employee siphoned funds by creating false invoices for fictitious or defunct fabric suppliers, directing payments to bank accounts she controlled. To execute the fraud, she set up fake email and bank accounts, then sent her employer fabricated invoices and proof-of-delivery records for goods that were never ordered or received.

The elaborate scheme unraveled when the company conducted internal audits of its inventory, invoicing, and business records, exposing discrepancies that led to her discovery. In a desperate attempt to evade accountability, the fraudster even faked her own death, sending an email—purportedly from a family member—claiming she had succumbed to an illness and surgical complications. However, she later confessed to FBI and IRS investigators, admitting she squandered the stolen funds on gambling and personal expenses.

This case of occupational fraud highlights the dangers of internal threats and the importance of proactive measures. Regular audits by third-party Certified Fraud Examiners could have detected the scheme earlier, preventing significant financial losses. Protect your company from similar risks—hire a Certified Fraud Examiner for a comprehensive audit today.