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Bookkeeper Fraud: a case study by a Wilmington CPA

a story of bookkeeper fraud told by a Wilmington NC CPA

The most unique story of bookkeeper fraud this Wilmington NC CPA has seen, or heard!

Here’s the most unique bookkeeping scam this we’ve has ever seen in New Hanover County. The case made the front page of Star News when she was convicted. Three year sentence as I recall. Happened in maybe 1997 or so.

I knew this lady personally between 1984 and 1991. Been to her house, met her family.  She had a great attitude. Clients loved her. She engendered trust. Knowledgeable too.  I think most Wilmington NC CPAs would have referred her clients.

This wasn’t an embezzlement case. According to the Star, she fabricated false documentation and claimed it was from the IRS. Exact details weren’t given. But there were multiple incidents.

The IRS will send your CPA, copies of notices you incur from them.  Per Form 2848, Power of Attorney and Declaration of Representative. So her clients didn’t know they should have been sent the notice too.

She then charged money to fix these fictitious problems.  About $1700 in the case cited.  The Star noted the precipitating event triggering the investigation was a victim’s relative noticing that it was, on one of the days this bookkeeper supposedly went to the Atlanta IRS office, a national holiday.  And why Atlanta?  Only Wilmington NC CPAs knew the local office was on Oleander?

Over the years I’ve never had a CPA tell me a story quite like this.  It reflects the complex taxation system in America, the convoluted system of contact inherent in a large beuracracy, and the average taxpayer’s respect, or fear, of the IRS. 

Please call us for a free consult on any tax, accounting or business issue at (910) 399-2705.

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