Fraud can also be small in dollars, but large in impact.
The NEWDaily online edition reported that the CEO of the largest bank in New Zealand resigned. Exact details were not given, though the bank said that an internal investigation had raised concerns over travel expense reimbursements. Media “widely reported” that Mr. Hisco billed the bank for thousands of dollars — worth of chauffeured car trips.
The thirty-year veteran Hisco said he did not agree with all of the board’s concerns, but “accepted accountability” and forfeited any unvested stock options. It is interesting to note that Mr. Hisco earned around $3.5 million in the last full year. This is a minor fraud in dollar terms, but we might wonder why a person would throw away $3.5 million over what may be a few thousandth of his annual compensation.
Is there more to the story?
The Financial Times clarified, quoting Sir John, a former New Zealand Prime Minister, that Hisco had the authority to spend the money, but it was his mischaracterization that got him into trouble. Mr. Hisco had spent the money on wine storage and chauffeur-driven cars over a period of several years.