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…
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.