Small Business Trends Radio

Confessions of an Embezzler – Is Your Business At Risk?

Barry Webne on Confessions of an Embezzler - Is Your Business At Risk? Think it’s not? Think again because small businesses – those with less than ten employees – are ten times more likely to experience embezzlement than larger corporations. Embezzlement is running rampant in the U.S. It is estimated that one out of every three U.S. businesses have been victimized, are currently being victimized, or will be victimized by this type of crime.

Our featured guest in this Episode of The Small Business Trends Radio is Barry Webne. Barry is a respected authority on the detection and prevention of occupational fraud and white-collar crime.

What makes Barry an expert? He was convicted of bank fraud for embezzling more than $1 million dollars. And he says it’s easy to detect and prevent this crime – with tips from an expert.

JumpUpTopics include:

  • The typical embezzlement scheme? — This usually takes place within an accountant or controller position and lasts approximately 18 months. The average embezzlement scheme usually nets the embezzler about $150,000 and, typically, many feel that they’ll never get caught. And the truth is – many are caught by accident. Either by taking a day off or simply being careless.
  • Who is the embezzler? — Surprisingly, it’s your ideal employee. The one who is always on time, churns out perfect work and is a whiz of a multitasker – this is the profile of a typical embezzler. Most feel overworked, underpaid and overwhelmed and many are suffering monetary pressures within their personal life. Sound like any of your employees?

Barry shares his personal insights on the psychological traits, behaviors and tendencies of an occupational criminal and believes that no company or organization – large or small, profit or non-profit – is safe.

Think it can’t happen to you? Think again and educate yourself on what to look for by clicking the red and yellow player below and listen to Barry’s full interview for tips on how to spot this crime or avoid it altogether.

IMPORTANT UPDATE: After this radio show was recorded we learned that Barry Webne, the guest, was brought up on a new set of charges involving embezzlement. Charges are pending in Federal Court in Toledo, Ohio as of February 2008.

8 Responses to “Confessions of an Embezzler – Is Your Business At Risk?”

  1. Amanda Says:

    Barry’s reasons for embezzling money are probably very common for embezzlers. Stress over money issues is tough. This is a very scary & real problem for small business owners. He gave some really good insight on how to try to prevent embezzlment and what to look out for.

  2. Martin Lindeskog Says:

    It has happened to me and my company. I will be more careful in the future. On the other hand, I have learned a lesson and I see a potential business opportunity. How to avoid future embezzler…

  3. Chris Says:

    I was employed by a privately owned, family operated, small business years ago. The controller was a childhood friend of the owner.

    After approximately 10 years of employment, it was discovered that he was embezzling $700 a week from petty cash. Charges were not pressed, however, I believe the company recuped money from his retirement plan upon his termination. We arrived for work one morning to find two attorneys and the owner waiting in the controller’s office for him.

    How was this discovered? Not sure, but had just returned from a skiing trip in Canada. But interestingly enough, Barry mentioned a vacation as a typical reason many get caught. Could’ve been the case in that situation as well.

    Additionally, I have known another to have been caught using a company credit card for personal items. Same scenario. Worked for a family run business and showed up for work one day and two attorney’s were waiting for him. They, too, recuped money from his retirement plan but did not press charges. Amounted to some $40K.

    Unfortunately, this happens everyday.

  4. Chris Says:

    I should’ve mentioned an interesting point, however. And that is that neither of the men above were suffering monetary problems. First gentlemen – exact opposite, actually.

    I believe it was just too tempting and they were crimes of opportunity.

  5. EJMalyn Says:

    It doesn’t surprise me that the “ideal employee” would be the one, it’s always the one you least expect, the one you most trust. Very scary!

  6. Frank Says:

    Our embezzler was the ideal employee too, easily trusted and very mulitasked. However, he was arrogant and cocky.
    His crimes lasted close to 4-yrs where he hid thingsfor a while, then arrogantly became more blatent.
    My wife and I were out with physical and family stresses and didnt DIG when we should have. We employ 12-15 people.
    WE PROSECUTED and now he sits in jail with 4-felonies and a $600,000 restitution order. With prosecution, he will also have to deal with the IRS…they expect INCOME TAXES on any money a person takes home. The IRS wont go after the embezzler without a criminal prosecution.
    IT IS IMPERATIVE THAT PEOPLE PROSECUTE.
    SHAME ON THOSE WHO LACK THE SPINE TO PROSECUTE THESE THEIFS, as they will always do it again to another business owner.

  7. EaP Says:

    once a con, always a con

  8. Embezzler | English Language Reference Says:

    […] that explains the victims of embezzlement and embezzlers in US small business sector, please click here, for an article that explains the typical profile of an embezzler, please click here & please […]

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