CFOSnafu.com » ‘Isn’t stealing OK if you’re a shopaholic?’

‘Isn’t stealing OK if you’re a shopaholic?’

September 11, 2008 by Shane Borer
Posted in: "Would you want this person in Finance?", Fighting off fraud, In this week's e-newsletter, Latest news & views, Tech failure

Shifty employees might have many reasons why they’d steal from a company. Thanks to this case, there’s one more that’s a definite no-no.

When Mary Beth Lorczyk of North Huntingdon, PA, was caught after spending nearly $758,000 of her employer’s money on personal purchases, she claimed she needed the money for medical reasons. Her defense: She was suffering from oniomania — better known as shopaholism.

The purchases she’d made on WesDyne International’s tab was through a company credit card. She used the funds to pay for vacations, jewelry, home improvements, a car and other purchases — standard fare for the person who loves to shop.

Thanks to her position in the company, she was able to cover her tracks by creating 1,700 fake invoices.

A federal judge didn’t buy Lorczyk’s shopaholic defense — her own credit cards were well under control and showed no evidence of shopaholism. She’s been sentenced to 33 months in prison, and must repay the stolen money.

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