CARTERSVILLE, Ga. – A former Cartersville manufacturing business owner faces federal bank and wire fraud charges after allegedly defrauding First Financial Bank out of more than $20 million through forged documents.
What we know:
Federal authorities arraigned 48-year-old Thomas Mwangi of Atlanta last week following a federal grand jury indictment charging him with two counts of bank fraud and 13 counts of wire fraud.
Mwangi, who owned and operated the Cartersville manufacturing company CAMaster, allegedly tricked First Financial Bank into approving $24 million in loans in 2023 to buy two Texas companies.
Federal prosecutors stated Mwangi falsified a brokerage statement to show $22 million in assets when he had less than $1 million, while also providing a forged document purporting to acknowledge the bank’s security interest.
After receiving the loan funds, Mwangi allegedly sent…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.