Published: June 10, 2007 11:06 pm         

Embezzling cases are on the rise

White-collar management and blue-collar rank-and-file workers may seem worlds apart, but some in both social classes share one common bond.

People in all corporate ranks — even longtime, trusted employees — are now being charged with embezzlement, police and prosecutors say — after simply slipping cash from the till or creating an elaborate cover-up that allows them to steal from their employers for years.

Raleigh County Prosecuting Attorney Larry Frail said embezzlement cases at his office have remained steady over the last few months, but compared to about one to one-and-a-half years ago, there has been an increase.

“I have noticed the trend, of course, and that trend is worrisome,” he said.

Recent embezzlement arrests, indictments and convictions include:

- Deborah Mitchell, 58, the former executive secretary for RESA I, was sentenced to four years and four months in federal prison in September 2006 for embezzling more than $1.3 million and filing a false tax return. She had pleaded guilty to the charges in May, admitting to embezzling the money from her 29-year employer from 1998 to 2006.

- Suzanne Snyder, 39, of Beaver, was charged with seven counts of embezzlement and seven counts of falsifying records in April, according to the Raleigh County Sheriff’s Department. Sheriff’s detectives say Snyder, a 15-year employee of Beckley Mechanical, embezzled more than $400,000 from the business between January 2001 and February of this year.

- Barbara Harper, 35, of Hinton, was indicted by a Raleigh County grand jury in May for felony embezzlement, according to Raleigh County prosecutors and West Virginia State Police. Harper had been employed at the Beckley Police Department since 2001 and later worked as a secretary for the Narcotics Enforcement Division. She is charged with embezzling about $1,555 in funds the division used for drug investigations.

- Gary Dale Bryant, 48, of Prosperity, was charged with one count of felony embezzlement by the Beckley Police Department in May. Beckley police say Bryant, the former manager of Pet Supplies Plus, is charged with embezzling more than $20,000 from the business by creating false refunds. Bryant confessed to the embezzlement, telling police he used the money to support his gambling at dog tracks and various video poker parlors.

Frail said the people facing embezzlement charges range from professional office workers to entry-level store employees.

“It’s anyone from the management on down. Cashiers — everyone — can fall prey,” he said.

If Frail had to pinpoint a reason for embezzlements, he would deduce most of it is rooted in the drug trade — with people stealing from their employers to support their addictions. Drugs, he said, are the root of almost all types of crime.

“It’s the bane of our society,” he said.

Besides some people supporting addictions to gambling, Frail noted the cost of living has spiked — gasoline prices in particular. Some people may be tempted to take employer money to temporarily cure a financial problem. Regardless of reasons, there is no excuse.

“There are other ways of self-help besides ripping off your employer,” he said. “...It is reprehensible and inexcusable.”

Detective Lt. Jeff Shumate of the Beckley Police Department said he sees a wide range of reasons behind embezzlement. Sometimes, people or their family members will have credit problems. They will often tell themselves they will pay their employers back later — but the amount of money stolen will continue to increase.

He noted financial crimes in general are on the rise in recent years — not only embezzlement, but also forgery, uttering and credit card fraud.

“Overall, paper crime has increased over the last few years,” Shumate said. “It’s a crime a lot of people are committing. It’s any financial crime, not just embezzlement. It is probably increasing more than any other crime.”

Debt, drug addiction and extensive gambling are often links to embezzlement, but Shumate noted some people he has interviewed about such crimes are simply buying items they could not purchase with their normal salaries alone. These items have included vehicles and major household items.

Detective Cpl. Frank Priddy, also of the Beckley Police Department, said the question behind the increase in embezzlement arrests is if more people are committing the crime or if better technology and “paper trails” are catching more people responsible. He noted cash registers are better formatted, surveillance video has increased and accounting procedures tend to be more strict.

“I think people are looking for a quick fix for a financial need,” he said. “I have been told by several different people I’ve arrested that they’re almost addicted to it. It’s a rush. They can take the money and buy something they want. It’s quick cash.

“Sooner or later, it catches up with you.

“...Multiple people have told me they have had substance abuse problems — you just never know. Some have told me they needed to get their kids shoes and clothes. You don’t know what to think.”

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Regardless of what causes embezzlement, police and prosecutors agreed that businesses must launch effective “checks and balances” on employees handling money, and this oversight should include management. No single person, they believe, should handle all business finances, and new hires should be screened thoroughly with background and credit checks.

“My advice to businesses is to not just have one person handling the cash flow,” Frail said. “If you have one person who is the bookkeeper — with no one looking over their shoulder and checking things — that’s a red flag.”

Screening new hires is the best way to prevent embezzlement, but Frail noted that even long after some employees have worked for one company, they resort to theft.

If nothing else, periodic audits should be a deterrent to anyone tempted to embezzle, Shumate said. Not only should more than one person handle funds, but he also said hiring an outside accounting firm would be an excellent idea.

“The biggest mistake is when you entrust one person with all the financial duties,” Shumate said. “Some of these people have worked at a company for 15 to 20 years. Over that time, trust has been built up. The business doesn’t think it will be a victim.”

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