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Samuel authorized the purchase of a $2 million dollar fidelity insurance policy for the purpose of protecting the restaurant he managed in the event of
Samuel authorized the purchase of a $2 million dollar fidelity insurance policy for the purpose of protecting the restaurant he managed in the event of employee theft or fraud. When discussing the purchase with the insurance agent, he assured the agent that the restaurant's accountant had been thorough a background check before being hired. The insurance policy was purchased and went into effect on January 1. On June 1 of that year, Samuel took over the management of another restaurant. The same accountant managed the books of both properties. A few months later Samuel discovered that the accountant had been creating and submitting false invoices for payment, which, over five years, had resulted in losses of more than $500,000
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