Advice on avoiding embezzlement
Barry Webne was convicted of embezzling more than $1 million over four years. He was a husband and a father with bills to pay. He just wanted to keep up.
After the small manufacturing company Webne worked for downsized, an opportunity was presented. He now worked with the monthly bank statements and issued paychecks; there were no internal controls.
After four years of theft, being let go by the company, confessing to the FBI and spending six months in a federal prison, Webne now speaks to groups nationwide to help prevent financial fraud. The McGowen, Hurst, Clark & Smith P.C. accounting firm hosted Webne at a seminar this morning to help inform Greater Des Moines business people about embezzlement. Statistics show that one-third of businesses are or will be victims of embezzlers.
Webne discussed the fraud triangle, a model with three pieces (opportunity, financial pressure and rationalization) that outlines why people commit financial fraud. Businesses will never be able to control the financial pressure felt by employees or their rationalization of the crime; what they can do is create internal controls to decrease the opportunities for theft and catch the problems earlier.
Justin Allen, an assistant Polk County attorney, shared examples of financial fraud in Greater Des Moines. Allen said that all companies, big or small, can be victims, but extensive records and bookkeeping will help deter the crimes or convict the criminal if a crime is committed.
Joni Tonnemacher, a partner at McGowen, Hurst, Clark & Smith who is certified in fraud deterrence, spoke and suggested that employers watch for personality changes and inconsistent transactions. Tonnemacher said staying involved and asking questions also help prevent financial fraud.