Defrauding the Government in Pittsburgh, Pennsylvania

An online MBA candidate related the following fraud story:

In 2008, an employee hoping to hide personal funds from the government hid the money in a company trust fund in order to gain personal government benefits. After ownership of the money would no longer affect receipt of those government benefits, the money was removed from the trust fund and given back to the employee.

The owner of the company was aware of this transaction as was his high-level employee who handled the trust accounts, placed the money, then later retrieved it. The controller was also aware of this fraudulent transaction, but none of them reported anything amiss.

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