Identity Theft

In reaction to an anonymous phone call stating, “a vendor scheme is costing your company millions of dollars”, an investigation of all Cardinal Wholesalers’ vendors was initiated. Based on the following evidence, the vendor Tri-State Trucking was identified as a shell company. Tri-State Trucking was owned by Bill Carter, a former employee and Mike Smith, a current employee who took over Bill Carter’s position. The amount paid by Cardinal Wholesalers to Tri-State Trucking during the period of January 8, 2002 through December 30, 2006 totaled $1,758,000. This amount represents the fraud loss suffered as a result of a fictitious vendor scheme.

Evidence

The following evidence was acquired through vendor lists, invoices, bank statements, copies of cancelled checks and a summary of payments.

пÑ"? Tri-State Trucking listed a PO Box as the address

пÑ"? Invoice numbers suggested Cardinal Wholesalers was there only client

пÑ"? Vague description of goods or services received

пÑ"? Balance due was an even amount with taxes or shipping added

пÑ"? Invalid Taxpayer ID

пÑ"? No contact information provided on the invoice

пÑ"? Invoice was created by an Excel program

пÑ"? Cancelled checks showed no evidence of typical company expenses

пÑ"? Personal items were paid using the Tri-State Trucking Company bank account

пÑ"? Checks made payable to Mike Smith and Bill Carter were signed by Bill Carter

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