Fraud Friday: A nonprofit executive


A nonprofit executive is going to jail for 24 months after convincing her employer to take her off the books and pay her under the table. The exec incurred medical and student loan debt that led to her wages being garnished. She worked out a deal where the nonprofit’s director instead diverted funds for her salary into his own personal bank account and then cut her checks or paid her in cash, in excess of what her salary had been. The exec then filed false returns that didn’t report the income and reported other fraudulent entries to create large refunds. The nonprofit’s director was also sentenced to 27 months.

(www.justice.gov/usao-md/pr/former-executive-director-maryland-center-adult-training-sentence-two-years-federal)

CPAs, get four hours of fraud CPE with our 2021 Fundamentals of Fraud Prevention & Detection Live WebinarClick here for more information.