November 2008   

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"If you do build a great experience, customers tell each other about that. Word of mouth is very powerful."
Jeff Bezos

"People are definitely a company’s greatest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps."
Mary Kay Ash

"Happiness is a positive cash flow." Fred Adler,
Venture Capitalist

"If you’re passionate about what it is you do, then you’re going to be looking for everything you can to get better at it."
Jack Canfield

"It was the best presentation on this subject I've ever seen."   
-Harold Rousso

“This course has been a wake up call to me, to keep my eyes wide open as my company grows in the future.”
-Michael Evans


To Catch A Thief: 
Protect Your Business from Internal Fraud

A convicted felon shares his story and the steps you must take now to protect your business from internal theft.

by Laurie Owen
Senior Vice President

It was so quiet you could hear a pin drop in the normally chatty group of jewelry store owners. The presenter spoke quietly, even a bit nervously. His message, however, had everyone in the room mesmerized. The topic was employee theft, the venue a business performance group, and the speaker, a convicted embezzler and someone known to one of the members. Although his former employer was not a jeweler, the circumstances and the impact of his actions hit close to everyone one in the room.

Our speaker, whom I will call Ted, shared with the group how he managed to steal over $500,000 over the decade he was employed with a family-owned food supply company before he was caught and ultimately sent to prison.

He started as an hourly employee doing odd jobs, then graduated to warehouse worker, and eventually worked his way up to general manager. During the time he was employed, the company grew rapidly from a $5m to $15m company. He worked hard, often putting in over 80 hour weeks. As the owners trust in him grew, so did his responsibilities. The more time he put in, the less the owners did. His stealing started small, with a few supplies here and there out of the warehouse. As Ted rose up the management ladder, his opportunities and boldness grew. He graduated to creating fake invoices, which in turn, were paid by real company checks. He had a partner on the outside of the company who helped cash the checks.

He was caught by chance, when one of the owners happened to review the accounts payable. One of his fake invoices happened to be on top of the pile. The owner did not recognize the vendor, and curiosity compelled to learn more. Things started to quickly unravel and eventually the magnitude of the embezzlement came to light. A conviction resulted in a jail term of over 4 years, two of which were actually served due to good behavior. He is now, he says, a reformed man, who has created an honest and ultimately much more satisfying life for himself.

His key points to the group to prevent a similar occurrence in their businesses:

DVD Series

“Profit Mastery: Creating Value and Building Wealth” 

A live recording of our two-day Profit Mastery program, this 7-set DVD series uses case studies and a down-to-earth style, and includes all the material from our internationally acclaimed two-day program.

This seven-set DVD series was produced in front of a live audience, so you will see real people learning the same tools and concepts that your audiences will experience. 

We’ve used the same blend of information, examples and humor in the DVD that are used in our live programs. You or your network members will come away with ideas and tools that can be put to use immediately to make, and keep, more money. 

Taught by world renowned speaker, Steve LeFever, this DVD series is designed to allow you to tailor the concepts for your organization and to provide for the flexibility of this information to be delivered and taught in a variety of ways and time schedules.

Watch a 6 minute promo video now!

  • Trust no one; Verify and cross check everything

  • Don’t give any one person too much responsibility

  • Treat your employees fairly – pay people what they are worth

  • Stay involved in the business and with your employees

  • Don’t let anyone else sign checks for you. Don’t use signature stamps

  • Set a good example. If employees see you taking things (supplies, etc) out of the company, they’ll think it’s ok for them as well.

  • In addition to criminal background checks on prospective employees, do credit checks. Get them to sign over permission to do so on their employment application.

  • Institute a proper division of business functions between preparing checks, receiving payment, making bank deposits, signing checks, opening mail, and bank reconciliation.

  • Have a good, computerized bookkeeping system and competent bookkeeper and outside CPA, who conducts periodic security audits.

  • Know your costs and the benchmarks for your industry so you can spot things that are out of alignment.

  • Educate all employees on the negative impact of theft. Solicit their support of and involvement in the prevention and detection of theft.

  • Don’t give employee advances. Get rid of employees who need them. If they are that close to the edge financially, chances are they will be tempted to steal.

  • If you are a victim of embezzlement, by all means prosecute. But spend your resources on a good credit attorney who will be your best chance of finding where the money went – so you have a chance of getting back.

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