Two Massachusetts residents pleaded guilty in federal court last week to stealing or receiving stolen government funds, according to the Massachusetts U.S. Attorney.
A 70-year-old woman from Brockton pleaded guilty to stealing a tax refund check that came in around one million dollars, according to the Massachusetts U.S. Attorney.
Lana Ruel pleaded guilty to one count of theft of government funds Thursday after she was arrested and charged in December.
According to a statement from the U.S. Attorney’s Office, Ruel tried to deposit a U.S. Treasury tax refund check of $931,000. The check was made out to a New York healthcare company, whose name Ruel used to incorporate a separate business in Massachusetts and open a bank account before trying to deposit the check.
When she deposited the check, the bank froze her account, the statement said.
Ruel told the bank she could “explain what the…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.