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Two employees of a private security company are facing charges of payroll fraud and mischief to data following an alleged payroll scheme that cost their employer over $72,000 through false work hour submissions and payroll manipulation.
Discovery of the Payroll Fraud
The company’s owner contacted police in February 2024 after detecting suspicious payroll records covering May 2022 to August 2023. Upon investigation, police discovered an alleged scheme involving the company’s operations manager, responsible for overseeing payroll administration, and a staffing manager, whose role included work hour submissions.
Alleged Scheme Details
According to police reports, the staffing manager submitted falsified work hours, which the operations manager approved and adjusted in the payroll system to process inflated payments. This coordinated manipulation reportedly resulted in excessive paychecks totaling more than $72,000 over the course of 15 months, causing significant financial losses to the company.
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Charges Filed
The operations manager turned herself in on June 25 and was charged with:
- Fraud Over $5,000
- Theft Over $5,000
- Mischief to Data
The staffing manager later surrendered to police on December 4 and was charged with:
- Fraud Over $5,000
- Mischief to Data
Both individuals have been released pending future court appearances.
Legal and Business Implications of Payroll Fraud
Payroll fraud is a significant issue in the security industry, where accurate timekeeping is critical for compliance and operational integrity. This case underscores the need for businesses to implement robust internal controls, including regular payroll audits and separation of duties, to prevent similar incidents.
