Maria Higgins, 36, was sentenced to 34 months of imprisonment and two years of supervised release for embezzlement and tax evasion schemes.

Higgins, formerly a bookkeeper at New England Kitchen & Bath LLC from 2018 to April 2022, stole more than $500,000 from the employer by issuing the organization's checks to herself. She often marked them as "commission" or "bonus", and used the signature stamp made with the owner's signature.

Higgins also initiated wire transfers to bank accounts in her own name; created a fake supplier; billed the company for fake expenses; and used her employer's cards to pay for personal expenses. Higgins also oversaw a construction proposal for a legitimate client project, but engaged in fraudulent behavior by expensing costs of the project through the employer while having the client pay her directly.

Higgins' schemes resulted in that employer's loss of $504,807.

Another employer, PVC Solutions, Inc., suffered a $356,181 loss from Higgins' conduct during February 2023 up to April 2024. Higgins worked as accounting manager for PVC Solutions Inc. Higgins issued employer checks to herself; created fake suppliers to round payments to herself; and paid for personal expenses on the employer's cards. She also created duplicate vendor payment templates in order to initiate wire transfers to herself. To conceal her scheme, Higgins manipulated accounting records.

Source: https://www.justice.gov/usao-ct/pr/manchester-woman-sentenced-federal-prison-embezzlement-and-tax-offenses

Commentary

In the above matters, the embezzlers issued fraudulent checks to themselves. In one of the matters, the criminal used a signature stamp.

In the one instance, the signature stamp gave one of the thieves signing authority.

Additionally, one of the wrongdoers also appeared to have broad authority to issue checks and manage the organization's credit cards. Such broad, unchecked authority significantly increased the embezzlement risk.

To avoid the risks, organizations should consider:

· Restrict use of signature stamps

· Lock required signature stamps or digital signatures in a way that cannot be accessed by all employees

· Prohibit the employee preparing checks from signing checks

· Require dual signatures on checks above a certain amount

· Review all bank statements, cancelled check images, and payee lists

· Run automated checks to identify any checks written to an employee outside of payroll

· Treat memo lines with words like "commission" or "bonus" as audit triggers, requiring documented back-up

· Require periodic, independent review of bookkeeper duties