Chapter Check Tampering.

Betrayal Slice

Everyone like pizza, and even subpar pizza is still enjoyable. Local pizzerias are known for serving the tastiest pizza, and Joel's Pizza is no exception. The company was established in 1990, and due to its success, it expanded to more than 30 locations in and around a Midwestern metropolis.

As the company's growth accelerated, Joel's was forced to expand its administrative team. In addition to being the company's controller/CFO and a close friend of the founder, Ton Galo, Marco Rossir joined Joel's in 2002. Joel's continued to expand during the rest of the 2000s, but it also faced financial difficulties. Ton had to fire employees, withdraw funds from his retirement account, and even raid his children's savings in order to keep the firm afloat.

Joel's had to add additional administrative workers as the company's momentum developed. In 2002, Joel's recruited Marco Rossir, who later became both the company's controller and chief financial officer and a close friend of the founder, Ton Galo. The rest of the 2000s saw Joel's continue to expand while still facing financial difficulties. Ton had to fire employees, cash in his retirement account, and even steal money from his children's savings to keep the firm afloat.

Yet all of this may have been prevented. Ton was investing all of his resources in Joel's, but Marco was immediately withdrawing them. Marco faked 166 checks totaling approximately $300,000 between 2004 and 2009, using the money for personal needs. He was fired in 2009.

Ton's signature stamp, the company checkbook, and the finances were all in Marco's possession as CFO. He took use of this access to issue false checks that he claimed were for company costs but which he ultimately cashed for his private use, including paying for the Catholic schooling of his children.

Marco was fired from Joel's when his scam was discovered in 2009, and he was charged in 2010 with forging the checks and submitting fake tax forms. Marco was given a sentence of 27 months in jail, followed by three years of supervised release after entering a guilty plea to all counts. Marco was also ordered to repay Joe $291,034.25 in addition to $68,023 in late taxes to the IRS.

Due to the effect this would have on their six children, Marco's wife pleaded with the court throughout the trial for leniency. Marco, on the other hand, had no sympathy from Ton because of the treachery he had suffered on both a personal and professional level.

Questions:

1. How did Marco operate his check-tampering scheme? Explain.

2. Examine the newest Report to the Nations from the ACFE. How does Marco's plan stack up against the typical check-tampering scheme in terms of loss and duration?

3. What are some reasons why this scam is different from the typical check-tampering fraud?

4. In light of Marco's family, do you believe the court ought to have been kind in this situation? If not, why not?