A former accountant is now facing 68 felony charges tied to financial misconduct. Think about that number for a second. Sixty-eight.
That is not one mistake. That is not a simple bookkeeping error. That is a breakdown of oversight, internal controls, and trust.
Most business owners read stories like this and think, “That would never happen here. We trust our people.”
I get it. You should trust your team. But trust without verification is not leadership. It is risk.
So let’s talk about what actually goes wrong in situations like this and, more importantly, how to make sure your real vendors are the ones getting paid.
Because at the end of the day, this is not just about fraud. It is about protecting your cash flow, your reputation, and your relationships.
How This Type of Fraud Usually Happens
In cases like this, the pattern is often similar:
- One person has too much control over the accounting process.
- They can add or edit vendors.
- They can approve invoices.
- They can cut checks or release payments.
- No one independently reviews the vendor list or bank details.
That combination is powerful. And dangerous.
All it takes is one fake vendor set up in your system. Or one real vendor’s banking information quietly changed. Payments start flowing somewhere they should not.
You keep operating. Your books look “fine.” Until they are not.
Meanwhile, your actual vendor is calling asking why they have not been paid.
Now you have a financial problem and a credibility problem.
The Real Question: How Do You Make Sure Your Real Vendors Get Paid?
This is where strong internal controls matter. You do not need a massive accounting department. You need smart systems.
Here is what that looks like in real life.
1. Separate Vendor Setup From Payment Approval
The person who enters or edits vendor information should not be the same person who releases payments.
If you are a small business and that is currently the same person, then you need an owner level review before any new vendor is paid.
No exceptions.
Even a five minute review of a vendor report once a week can save you hundreds of thousands of dollars.
2. Lock Down Changes to Vendor Banking Information
This is a big one.
Any time a vendor’s ACH or wire information changes, there should be:
- A documented request.
- A direct confirmation with the vendor using a known phone number, not the one in the email requesting the change.
- A second set of eyes approving the update.
Fraudsters love email requests that say, “We have updated our banking information. Please send future payments here.”
Slow down. Pick up the phone. Verify.
3. Run a Vendor Audit Twice a Year
Pull a full vendor list and review it like a detective.
Ask yourself:
- Do I recognize every vendor name?
- Are there vendors with P.O. boxes only?
- Are there vendors with addresses that match an employee’s home?
- Are there duplicate vendors with slightly different spellings?
This is not paranoia. This is protection.
A simple vendor review can uncover fake entities, duplicate payments, and long forgotten recurring charges.
4. Match Payments to Real, Approved Invoices
Every payment should tie back to:
- An approved purchase.
- A legitimate invoice.
- Evidence that goods or services were received.
No invoice. No payment.
If someone pushes back and says you are being too strict, remember this: structure protects everyone, including honest employees.
5. Review the Bank Statement Yourself
As a business owner, you do not need to code transactions.
But you should absolutely review your bank statements monthly.
Look at:
- Unfamiliar vendor names.
- Round dollar payments.
- Repeated payments just under approval limits.
- Payments to individuals instead of companies.
Your eyes are powerful. You know your business better than anyone.
This Is Not About Distrust. It Is About Leadership.
The businesses that get hit hardest by fraud are often the ones that say, “She has been with us for years. We trust her completely.”
That may be true.
But real leadership builds systems that protect both the company and the employee.
If someone has the opportunity and no oversight, you are putting them in a dangerous position. Strong controls remove temptation and remove suspicion.
That is a gift to your team.
If You Want to Sleep at Night
Ask yourself today:
- Who can add a new vendor in my system?
- Who can change banking details?
- Who can release payments?
- When was the last time I reviewed my vendor list?
If you do not know the answers, that is your starting point.
Pull the vendor report.
Review the last three months of payments.
Tighten up approval processes.
You do not need to overhaul everything overnight. You just need to take the first step.
Fraud does not start with 68 felonies. It starts with one unchecked opportunity.
Close the gaps now, while you still can.
