ACG 5-Three people work at a Real Estate Title Firm

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Three people work at a Real Estate Title Firm, called Benchmark, the firm closes deals on new houses. They get checks as down payments/escrow from the buyers of the homes. They get checks from the banks as reimbursement items on the HUD statement. All three can write and sign checks and its not uncommon for them to have each other write the checks out for each other, so they can close out deals. They all also make deposits of the weekly receipts. Benchmark, the owner is not involved. Your suspects:

Kathy:

• 48 YOA/ 3 years with the Company/ Makes $68,000 annually
• Bookkeeper for Benchmark/ Has access to all records
• Drives a 2013 Lexus/ Has new home
• Two kids in College-FAU
• Can sign checks/ make deposits/ make ledger entries
• Goes out on the weekend/ quiet/ keeps to herself

Cassandra:

• 49 YOA/ 3 years with the Company/ Make $88,000 annually
• Real Estate Agent/ Closer-Closes deals on new purchases
• Married-two children in High School
• Purchased her home 15 years ago
• Drives a 2012 Mercedes
• Can sign and write checks/ has access to all records
• Cannot make ledger entries
• Goes out three times a week and every weekend

Joe:

• 49 YOA/ 3 years with the Company/ Makes $88,000 annually
• Real Estate Agent/Closer-Closes deals on new purchases
• Single/ Enjoys the night life/ goes out whenever he wants
• Drives a 2013 Corvette
• Purchased his home 15 years ago
• Can sign and write checks. Has access to all records
• Cannot make ledger entries

Funds are missing in excess of $100,000. You, as the Certified Fraud Examiner/CPA, have to figure out who took the funds, what records you need, how you will explain the crime and how they did it!!!!