A fraud and money-laundering scheme uncovered by the U.S. Attorney’s Office has a Nantucket connection.
U.S. Attorney Leah B. Foley announced late last week that four individuals had been indicted for the theft and fraudulent deposit of more than $12.2 million in stolen U.S. Treasury checks, and more than $1 million in other fraudulent activity targeting federally insured banks, credit unions, and their customers.
Foley said the proceeds from the thefts were used to purchase luxury watches and jewelry, as well as to extend a $425,000 Nantucket real estate loan.
A federal grand jury has indicted the following defendants on one count each of bank fraud conspiracy and money laundering conspiracy:
- David Obeng, 24, of Dedham
- Lynley Joseph, 26, of Brockton
- Lindsley Georges, 33, of Everett
- Shaunsayh Addo, 33, of Leominster
All four defendants were arrested last Thursday morning. Following initial…
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.