Fraud
The main suspects at this time are Ben Hill, Michelle Shelton, Candie Harris, Sam MacCarty, and Phil Ackers. The red flags in this case deal primarily with a lack in segregation of duties. These suspects all juggle multiple roles, some of which are not listed in their job description. Some of these suspects actively seek out additional responsibilities and place themselves in roles where they probably do not belong. Further rationalization for choosing these suspects is outlined below.
BEN HILL is at the top of the suspect list for a reason, he has his hands on almost all of the money passing through the TBC Organization. He was observed to be obsessing over regular tasks and duties during the audit. Almost every duty that involved handling cash was overseen by Hill. There are very little controls on cash, as Ben carries the cash between concessions, collects cash from all sales, and is solely responsible for depositing cash from promotional sales. The only control over the cash right now is double counting once the money has arrived and is all gathered up at the end of each night. He also has an overall opinion of being the secret to the team’s success; he was heard stating that if he was out of the picture, the team would fail.
Hill’s micromanaging style shows a need to have control over every detail of the business. This type of management is a huge red flag pointing towards financial statement fraud (ACFE, 2012, p.1.238).One of the employees, Sam MacCarty, pointed out that though Ackers is the President of the team, Hill is seen as the one in control. This could lead to a possible resentment of Ackers and the team as a whole. Hill is pulling all of the weight and not getting paid what he deserves for ensuring success; dealing with cash on a routine basis and shouldering the responsibility and the resentment could lead to giving in to the temptation offered by the opportunity.
Hill also sticks out because he recently switched to a new equipment supplier,
BEN HILL is at the top of the suspect list for a reason, he has his hands on almost all of the money passing through the TBC Organization. He was observed to be obsessing over regular tasks and duties during the audit. Almost every duty that involved handling cash was overseen by Hill. There are very little controls on cash, as Ben carries the cash between concessions, collects cash from all sales, and is solely responsible for depositing cash from promotional sales. The only control over the cash right now is double counting once the money has arrived and is all gathered up at the end of each night. He also has an overall opinion of being the secret to the team’s success; he was heard stating that if he was out of the picture, the team would fail.
Hill’s micromanaging style shows a need to have control over every detail of the business. This type of management is a huge red flag pointing towards financial statement fraud (ACFE, 2012, p.1.238).One of the employees, Sam MacCarty, pointed out that though Ackers is the President of the team, Hill is seen as the one in control. This could lead to a possible resentment of Ackers and the team as a whole. Hill is pulling all of the weight and not getting paid what he deserves for ensuring success; dealing with cash on a routine basis and shouldering the responsibility and the resentment could lead to giving in to the temptation offered by the opportunity.
Hill also sticks out because he recently switched to a new equipment supplier,