It may not be a surprise to owners of business large and small, but 2011 continued the “frenetic pace” in employee theft.
Marquet International Ltd., a Boston-based boutique investigative, litigation support and due diligence firm, on Tuesday released “The 2011 Marquet Report on Embezzlement: A White Collar Fraud Study of Major Embezzlement Cases Active in the U.S. in 2011.”
At least part of the problem stems from the struggling economy.
“2011 was another banner year for employee theft in the United States,” reads the fourth annual report, “continuing the frenetic pace set in 2010. … As noted in last year’s report, employee misconduct and internal corporate fraud will continue to be a problem as the U.S. economy struggles. However, a poor economy is not the only driver for employee theft.
“The Marquet data and studies suggest that there is always an ambient level of corporate fraud – often driven by individuals seeking to maintain a lifestyle grander than what they could otherwise enjoy who have rationalized their actions,” continued the report. “Indeed, in poor economic times, these kinds of frauds surface more frequently since business stakeholders tend to be more attentive to finances and the bottom line. It is noteworthy that since most of these cases span a period of several years, the frauds were actually commenced during stronger economic times.”
Embezzlement often goes unnoticed during a booming economy, according to the report, since the victim is typically making healthy profits and the embezzler starts by taking smaller, regular amounts.
“We have found that many embezzlers accelerate their thefts over time, leading to a higher probability of getting caught,” continued the report.
The report looked at more than 470 embezzlement cases from throughout the country.
Marquet International, led by Christopher T. Marquet, is hired by corporations to help in internal investigations, corporate fraud, and allegations of employee misconduct. The firm also is retained to conduct thorough due diligence on key people in businesses and corporate transactions.
The annual Marquet Report on Embezzlement is a result of Marquet’s Fraud Talk blog in which the firm regularly documents active cases of employee misconduct and white collar fraud.
