Fidelity insurance policies protect the insured against loss of money or other assets resulting from fraudulent actions committed by an employee, including theft and forgery among others. Certain fidelity insurance policies will cover a portion of the costs that were incurred through the course of investigating the wrongdoing, in addition to some or all of the misappropriated funds.
Toronto forensic accountants nagel + associates possess the knowledge and experience to provide thoughtful and effective assistance for either the insured organization or the insurer when a fidelity insurance policy exists and wrongdoing is discovered, particularly to support a claim.
The board of directors at JACE Inc. – a local and respected charity – hired a forensic accounting firm to investigate one of their Senior Directors who was working with the organization. They suspected that he was stealing money out of the charity’s funds that were to be allotted for overhead expenses.
The forensic accounting firm performed numerous interviews with employees and reviewed the documentation which supported the company’s claims, which allowed them to prepare an expert report that outlined their findings.
The Report found that the Senior Director in question had stolen $250,000 of the charity’s funds over a six-year period. The Senior Director had created a fictitious corporation with almost an identical name to one of the charity’s vendors with only a slight difference in spelling. The Senior Director sent fraudulent invoices to the charity that included a falsified account of the work that was done. The payment for these invoices were sent directly to his personal account
Red Flags:
- Interviews
- Financial records
- Vendor invoices
- Banking records