Embezzlement Prevalent In Area Businesses

According to police reports, there have been 12 embezzlements reported since January 2005 totaling $452,986 in Benton and Washington counties. But that’s only the reported embezzlement cases.

Robin Green, Benton County’s prosecuting attorney, said her office has no way to keep up with embezzlement cases because they are lumped in with theft of property cases. However, she said, “There’s always a high number of embezzlements in Benton County, and I’m not sure what the reason is.”

She said there are “several” cases pending, with one that involves more than $200,000 in Siloam Springs.

The typical amount of embezzlement can be from $50,000 to $100,000, said Terry Jones, Washington County’s prosecuting attorney, “depending on how many trips are taken to the Caribbean.”

Many of the embezzlement cases are with small businesses where one person is trusted with the bookkeeping, Jones said. Most take place at small businesses such as doctors’ offices or charity foundations.

Jones said employers usually find out by accident when the bookkeeper is out sick and someone else finds discrepancies when they look at the books. Those who embezzle do so because they’re in a bind and think they can just borrow some until next payday. “Then it grows, and they’ve done it 15 times,” he said.

Jones said his office’s computers don’t currently track embezzlement cases, although that is something it’s currently working to do in the future. But there are always one or two cases pending on any given day.

The number of cases is half of what it was in Washington County from 1992 to about 2002, Jones said. That’s because the area was booming economically, making it easier for people to take advantage of unsuspecting people.

Many times embezzlement isn’t reported, he said. Sometimes business owners are too embarrassed to admit they’ve been taken advantage of and don’t want to ruin their reputation, especially if they’re doctors.

Jones said that auditing is a great deterrent from embezzlement but that many small companies can’t afford it — they can’t justify the cost of an audit.