Shortly after a contracting firm's controller pled guilty to embezzling $8.7 million from the firm, the owner and his son filed a lawsuit against the bank that manages their accounts.
They allege bank officers were aware of suspicious financial transactions involving their accounts, yet the officers failed to inform them.
According to the controller's testimony, she embezzled millions from the contracting firm over a 10-year period, using unauthorized checks and straight transfers of funds. She used the funds for personal expenses, as well as capital for a business she launched with a partner. She covered up her theft by falsifying accounts payable records to show the payments were made to legitimate vendors.
Investigators found email evidence that the bank began to have concerns about suspicious transactions in 2014. However, the lawsuit states bank officials discussed their concerns only with the controller, which resulted in strengthening the controller's ability to continue her embezzlement scheme.
The U.S. attorney's office is in the process of selling off the fraudster's assets, including property, cars, jewelry, and construction equipment. Torsten Ove "Construction firm hit with embezzlement sues Citizens Bank" www.post-gazette.com (Feb. 18, 2020).