Court documents made public this month include a report drafted by the city’s Office of the Inspector General (OIG), which conducted a yearslong investigation into Hudgins’ claims that lower-level employees were abusing overtime. Attorneys for a woman at the center of that probe revealed that she is now the target of a U.S. Department of Justice grand jury, while the other woman she allegedly conspired with suspects she too is under federal criminal investigation, according to court records.
Inspector General Alexander DeSantis previously declined to release the…
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.