Trusted employees are continuing to victimize companies via fictitious shell-companies, as demonstrated by an alleged embezzlement matter, based upon litigation filed in Milwaukee and Chicago. A former MillerCoors executive has been indicted for a multi-year fraud scheme involving a Chicago-based beer company, allegedly perpetrated by 14 people and 15 shell-companies.
David Colletti, a former Senior Director, submitted and approved fraudulent invoices for services never rendered for an 11-year period.Typically, with such schemes the victim business is in control of the documentation that would point to the misappropriations.For example, accounts payable processing documentation that would include the invoice received, check requests and funds disbursed.This contrasts with off-book schemes such as revenue diversion, where there will be little evidence retained.
Intensive forensic tracing procedures for a limited scope period would be effective in detecting this type of scheme and would be relatively inexpensive in comparison with the multi-millions lost in this instance.Such procedures would include tracing disbursements to supporting invoices, receiving reports for receipt of goods or services and verification of address legitimacy.
The improprieties at MillerCoors were uncovered by a diligent accountant who took exception with the appearance of a fraudulent invoice.It was determined that the fictitious vendor address was that of a former employee of Miller Brewing and MillerCoors who had worked closely with Colletti for years.