Theft or Fraud

Bruce is a Security Supervisor for a large import and distribution company. The company has been having issues with break-ins and graffiti damage to some its warehouses. To increase security presence, Bruce’s Manager Denise, asks him to conduct drive-by patrols of the companies warehouses after hours. Bruce accepts, and Denise agrees to pay him an overtime allowance for the extra patrols, and provides the use of a company vehicle.

Bruce decides that the extra patrols are in fact not necessary, and uses the company vehicle to run personal errands instead. He enters false entries in the vehicle logbook to indicate he has completed the patrols, and submits his overtime time sheets to payroll, whereby he is paid accordingly. This continues for months, until one of the warehouses is broken into at the time Bruce should have been patrolling the area. Bruce denies he has done anything wrong, and states he has been conducting the requisite patrols.

What should the Denise do? How can she prove Bruce has committed fraud? How can the company rectify the situation and prevent this from happening again?

Dealing with these matters can be a real challenge for any organisation, but employers must ensure the matter is dealt with appropriately and effectively.  Employers need to consider;

• who will conduct the investigation?
• how an investigation will be conducted?
• what evidence is available?
• how to deal with he employee?
• how to protect the organisation form further risk and exposure?
• whether the police or the Corruption and Crime Commission need to be notified?

Under the Fair Work Act 2009, theft or fraud is considered to be “serious misconduct”.

*All case studies depicted are compilations from actual events.  All names of person or references to organisations have been changed for reasons of privacy and confidentiality. Case studies are for illustrative purposes only. Any similarity to actual persons or organisations is purely coincidental.