Confessions of a Fraudster

I wrote this letter to give you a glimpse into the mind of a fraudster. The scenarios, people, and names are fictional.

Dear Jane,

It is with heavy heart that I am writing this letter, but the overwhelming feeling of guilt has been eating at me for the past few years. I am so very sorry for what I am about to tell you and hope that you will find a way to forgive me. I know that it may take some time, but I think you will understand that I was only doing what I had to do.

As you know, the auditors got here Monday. They are digging into the company’s records just like normal, but they are asking some questions around certain payroll transactions. Their questions relate to a certain employee listed on the register. I am trying to answer their questions, but they don’t seem to get it.

You remember when you made me add your kids to the payroll? It was soon after each one of them turned 16, and the payments continued until they graduated college. Well, all of them except little Johnnie. He got paid for a good while longer because it took him a long time to find a job. They got paid, but they didn’t actually do any work.

It was very hard for me to do this when you came to me the first time. I knew it wasn’t right. I also worried about the auditors asking about it. It got easier and easier along the way, and the auditors never discovered it. Thinking back now, maybe it was because the kids had your ex-husband’s last name instead of yours so the auditors never put two and two together. If they had asked, I would have done my best to cover it up for you.

Now, they are asking questions about someone else on the payroll. I tried to cover it up, but they keep asking more and more questions. I am telling you because I think they are going to probably talk to you tomorrow about it. After I met with them for over an hour today, I overheard a couple of them talking in their little room. One of them said, “We have enough to bring this to Jane’s attention.” I am not sure what “enough” means, but I think they are talking about something that I have been doing. I wanted to tell you my side because these two days have been torture for me.

The person they have been asking questions about is my daughter, Thatcher. You know how hard it has been on us since my husband passed away two years ago. Cancer sucks! I started paying her some for work she was doing around the office a few years ago. Do you remember when she was up here filing and organizing the storage rooms? It was too easy to just continue with the payments, and the money has helped us out so much.

I know now that it was wrong, and I hope that you understand why I had to do it. I would never do anything to hurt you. You know that. We are like sisters and I hope that you can forgive me. I hope that I can keep working for you and that you know that I will never do anything like this to you ever again.

Yours truly,

Winfrey

The following are several questions that I would like you to consider in analyzing the fraudster’s mindset:

1. What pressure did Winfrey experience in her life that triggered her actions?
2. How did she identify the opportunity to start her scheme to pay her daughter?
3. How did Winfrey rationalize her behavior?

I hope you enjoyed this blog as much as I enjoyed writing it. In next week’s post, we will review Winfrey’s letter in more detail and search for answers to these questions.

For weekly insights on fighting financial fraud, click here: