GUILTY MS - Linda Reed for embezzlement, Copiah County, 2012

[cocomod]

I am an accountant by profession, and I can tell you that 20,200 does not seem like enough money of "embezzlement" to run away. I know of a company that found out just a couple of weeks ago that their bookkeeper has been embezzling for 1 1/2 years - to the tune of $150,000. When the bookkeeper knew that they were auditing their books, she didn't take off. She eventually even confessed. She took a great deal more money than $20,000, and she didn't run off to Mexico.

This case is very confusing to me.

 

[LaLilith]

I am having a hard time swallowing these new developments also. Sounds like they were setting this story up when they made the early comments about money being possibly missing.

I still believe IMOO this woman came across something hinky at work, something to do with money, and maybe was already set up to point the finger at her and she was about to blow the whistle.

I don't like disagreeing with LE but I get the vibe (again MOO) that the local LE is buying this whole thing too easily.

It is possible this woman stole 20K, left her kids, grandkids, elderly mother to live in squalor in Mexico(even in Mexico 20K wouldn't last the rest of her life unless she is living at a very very basic level) but I don't believe it is probable.

Unless there is more evidence that LE is not revealing then I am worried they have developed tunnel vision in this case. What worries me even more is the sloppy way they seemed to handle this case from the beginning. Considering the new developments it seems they had tunnel vision from the very beginning. Hopefully not intentionally.

 

[Breazy]

I'm with you neesaki and everyone else here too. How in the heck could 20k even be considered petty cash? Just the fact that they're saying the 20k was petty cash is hinky to me. Why in the h*ll would you have that much money sitting around as petty cash? I can't shake the feeling that Mr. Moore is involved in Linda's disappearance and it infuriates me to no end that it appears that he's going to get away with it. This literally makes me sick for Linda's family.

 

[LaLilith]

I'm with you neesaki and everyone else here too. How in the heck could 20k even be considered petty cash? Just the fact that they're saying the 20k was petty cash is hinky to me. Why in the h*ll would you have that much money sitting around as petty cash? I can't shake the feeling that Mr. Moore is involved in Linda's disappearance and it infuriates me to no end that it appears that he's going to get away with it. This literally makes me sick for Linda's family.

Exactly. As an accountant would she have even bothered with petty cash? Couldn't she have skimmed a heck of a lot more in other ways? What about her other clients? Are they missing money? Or is it only the "petty(I agree 20k is not petty) cash" funds from her main employer?

If money is missing from other clients or the IRS finds discrepencies that point to her in other accounts I might be swayed but at this point I am still not buying it.

 

[Breazy]

Exactly. As an accountant would she have even bothered with petty cash? Couldn't she have skimmed a heck of a lot more in other ways? What about her other clients? Are they missing money? Or is it only the "petty(I agree 20k is not petty) cash" funds from her main employer?

If money is missing from other clients or the IRS finds discrepencies that point to her in other accounts I might be swayed but at this point I am still not buying it.

Yes... to all you said!! It just deeply hurts my heart that Linda Reed is being painted this way cause I just don't believe that to be the case. I would be absolutely astonished if this was true of her. I believe Linda doesn't come home cause she can't. My heart just aches for her and her family and the injustice of it. I don't know why I feel so strongly about it but I just know someone is getting away with something!!!

 

[Unscripted]

Professional bean-counter here as well.

It does sound as if funds have gone astray -- $20,200 in 2010 (per up-thread links) as determined by federal forensic accountants and a CPA hired by the company. Despite the reality that a CPA is hired and paid by a client he is bound by a code of ethics that requires him to be both independent and objective in his reporting. The bottom line is that the client pays the fee, but “it is what it is” on the financial report — a true and accurate account of the financial affairs (apart from that little nastiness known as the Enron scandal).

A few years ago an acquaintance, who worked as a free-lance accountant for a large construction company, was requested by a senior member of management to make out weekly checks “payable to cash” to the tune of about $1,000 a pop for “walking around money” -- petty expenses. At the end of the year, tax forms were compiled and it was advised by that same management member (when questioned) that the 50k+ was a payment to a sub-contractor “XYZ Co” who supposedly required to be paid cash in order to secure fast-tracked services. Subsequently XYZ was audited by the tax authorities for under-reporting income. Everything hit the fan and it was revealed that the senior executive had been funnelling that money to keep a mistress. It occurred to me that the free-lance accountant, who drew up and coded the check (payable to cash), could easily have been called into question for possible embezzlement had the truth not come out about the exec’s extra-marital affair.

I am not suggesting in any way that this story should be used as a template to explain Linda’s disappearance, rather I’m only offering it as an example of an attempt at creative accounting that failed.

 

[Breazy]

@Unscripted And that's a perfect example of what I believe has happened in this case with Linda Reed taking the fall in absentia. Makes me sick that she's being used as a scapegoat for someone else's inproprieties and that someone has probably done away with Linda and will get away with laying the blame on her. Too sad!!

 

[Unscripted]

@Unscripted And that's a perfect example of what I believe has happened in this case with Linda Reed taking the fall in absentia. Makes me sick that she's being used as a scapegoat for someone else's inproprieties and that someone has probably done away with Linda and will get away with laying the blame on her. Too sad!!

It has been reported (upstream via MSM video) that Linda was an approved signatory for company checks. Surely she wasn’t the solo check-signer in a company that she didn’t own…?

 

[hollyblue]

It has been reported (upstream via MSM video) that Linda was an approved signatory for company checks. Surely she wasn’t the solo check-signer in a company that she didn’t own…?

.

I find it hard to believe a small company like that would keep 20K in a petty cash account. Seriously..? Whose decision was that? That tells me something WAS a little hinky and had been taking place. IMO I'm not a CPA, just a bookkeeper also, but who was auditing the books for this company?? It should raise red flags to whoever is investigating the financials that she was given check signing privileges in the first place. It's a small family owned company right? Was she ever bonded? I still have a hink that she was possibly "closer" to a family member to be given so much responsibility and trust and something went terribly wrong. Very unusal, imo. The family has had other businesses close or fail if I'm not mistaken. JMO, MOO, etc.

ETA: I'm sure the investigators will look at the bank accounts of others around the time the money went missing. IMO

 

[helpfindlinda]

She was not the only person authorized to sign checks. The owner could sign for certain and I'm not certain if anyone else. My question is hypothetically speaking, if a business purchased items for customers to get business, but knew the customer was not supossed to accept gifts, cash, trips or lets say kickbacks, where would be the best place to hide doing so? I'm wondering if that could be run through petty cash? I'm not saying that happened there. Just curious if that is something that happens at businesses like this. Is such a thing possible?

 

[hollyblue]

Professional bean-counter here as well.

It does sound as if funds have gone astray -- $20,200 in 2010 (per up-thread links) as determined by federal forensic accountants and a CPA hired by the company. Despite the reality that a CPA is hired and paid by a client he is bound by a code of ethics that requires him to be both independent and objective in his reporting. The bottom line is that the client pays the fee, but “it is what it is” on the financial report — a true and accurate account of the financial affairs (apart from that little nastiness known as the Enron scandal).

A few years ago an acquaintance, who worked as a free-lance accountant for a large construction company, was requested by a senior member of management to make out weekly checks “payable to cash” to the tune of about $1,000 a pop for “walking around money” -- petty expenses. At the end of the year, tax forms were compiled and it was advised by that same management member (when questioned) that the 50k+ was a payment to a sub-contractor “XYZ Co” who supposedly required to be paid cash in order to secure fast-tracked services. Subsequently XYZ was audited by the tax authorities for under-reporting income. Everything hit the fan and it was revealed that the senior executive had been funnelling that money to keep a mistress. It occurred to me that the free-lance accountant, who drew up and coded the check (payable to cash), could easily have been called into question for possible embezzlement had the truth not come out about the exec’s extra-marital affair.

I am not suggesting in any way that this story should be used as a template to explain Linda’s disappearance, rather I’m only offering it as an example of an attempt at creative accounting that failed.

Sounds like the check and balances weren't in place. Who the heck signed the checks and didn't find it hinky when made out to cash? Didn't the transaction need an approval?

 

[Unscripted]

$20,000 is a lot of phony receipts for coffee and creamer from Walmart isn’t it? Sure... you could pad the office and cleaning supplies bills and make up fake invoices from the industrial door mat people and the coffee truck man -- they always want cash. The business doesn’t sound as if customers would be paying cash so skimming off the deposits is probably not possible.

Theses days many corporate bills are paid on-line and fewer checks are written so that eliminates the manager reviewing the back up vouchers before he signs the check, so there’s less scrutiny on the front end. I guess you could set up a phony supplier (or add extra invoices to an existing supplier) for parts and then write a check and cash it at a 24-hour money mart, once you have an account I think you’re all set. You could set up your own Visa as a payee and transfer money directly from the company bank account and code the payment as supplies. If you were the accountant who also took care of the owner/managers personal bills the possibilities are endless. Sometimes owner/managers take a draw through the year and then work out the tax deductions at the end of the year, so maybe it would be easier for an accountant to take out $2,000 here and there via debit and say it was a shareholder’s advance for their boss.

I’m always surprised in private family-owned businesses (small and large) at the amount of management override that compromises internal control — ya ya, just get me the check for so-and-so and I’ll give the details/invoice before month-end…

Sounds as if someone confronted Linda that evening and maybe foul play was involved. It’s pretty easy to spread rumors about someone being in Mexico with a lot of money.

 

[Dushi]

So many things about this case have bothered me from the very beginning
I believe this is one of the most sloppy investigations I have ever followed (based on what we know)

At first it was reported that Mrs Reed may have been suffering from dementia
Where the he** did THAT come from?

Then there was money missing according to her boss, long before an audit, which took months , was ever done

The money supposedly went missing in 2010 and went unnoticed so how did he know money was missing

There is far more to this story than we know and I can only hope that it all comes out
LE needs to be held accountable IMO


Until I hear a lot more, I do not believe this woman left her life behind, left her bank account, her vehicle and her family for a mere 20K
No job, no pension, no family for 20K?

I believe this woman is innocent, in danger or worse
If they find far more money missing, I will reconsider my humble opinion

 

[neesaki]

She was not the only person authorized to sign checks. The owner could sign for certain and I'm not certain if anyone else. My question is hypothetically speaking, if a business purchased items for customers to get business, but knew the customer was not supossed to accept gifts, cash, trips or lets say kickbacks, where would be the best place to hide doing so? I'm wondering if that could be run through petty cash? I'm not saying that happened there. Just curious if that is something that happens at businesses like this. Is such a thing possible?

If the business has some cash customers, the money may be initially put into the petty cash box or safe, wherever it is stored. I do wonder if they had a lot of cash business, if so they most likely would not want this to be known by anyone. Other than the owners, any of the office personnel including Linda, could very well be privy to this information. May also know the combination or have a key to the safe.

Also, other employees could have found out about cash kept there on premises. And, ex-employees? I sure would hope that LE has investigated that possibility, though I'm definitely not holding my breath.

Just an idea, a robbery could have taken place and the thief could have forced Linda to open the safe. Maybe the owners don't want to reveal how much cash there was so are covering up what may have really happened. Would be interested to know if a large amount of cash had been taken in that day and the owners hadn't gotten around to retrieving it.

 

[Saracen]

So many things about this case have bothered me from the very beginning
I believe this is one of the most sloppy investigations I have ever followed (based on what we know)

At first it was reported that Mrs Reed may have been suffering from dementia
Where the he** did THAT come from?

Then there was money missing according to her boss, long before an audit, which took months , was ever done

The money supposedly went missing in 2010 and went unnoticed so how did he know money was missing

There is far more to this story than we know and I can only hope that it all comes out
LE needs to be held accountable IMO


Until I hear a lot more, I do not believe this woman left her life behind, left her bank account, her vehicle and her family for a mere 20K
No job, no pension, no family for 20K?

I believe this woman is innocent, in danger or worse
If they find far more money missing, I will reconsider my humble opinion

Would not the company accounts for 2011 show this up?, I cannot believe 20k came from petty cash

 

[Saracen]

If the business has some cash customers, the money may be initially put into the petty cash box or safe, wherever it is stored. I do wonder if they had a lot of cash business, if so they most likely would not want this to be known by anyone. Other than the owners, any of the office personnel including Linda, could very well be privy to this information. May also know the combination or have a key to the safe.

Also, other employees could have found out about cash kept there on premises. And, ex-employees? I sure would hope that LE has investigated that possibility, though I'm definitely not holding my breath.

Just an idea, a robbery could have taken place and the thief could have forced Linda to open the safe. Maybe the owners don't want to reveal how much cash there was so are covering up what may have really happened. Would be interested to know if a large amount of cash had been taken in that day and the owners hadn't gotten around to retrieving it.

I would think that a robbery would have been a perfect excuse for the owners,they may to have even been able to claim on the insurance, and Linda would not have to have been disappeared..JMO

 

[Dushi]

Would not the company accounts for 2011 show this up?, I cannot believe 20k came from petty cash

I would think that it would show up at year end

My mistakes always do:blushing:

 

[neesaki]

I would think that it would show up at year end

My mistakes always do:blushing:

I agree, and find it suspicious that they have just now discovered it. :waitasec:

Maybe they're just playing dumb?

 

[neesaki]

I would think that a robbery would have been a perfect excuse for the owners,they may to have even been able to claim on the insurance, and Linda would not have to have been disappeared..JMO

Unless the cash was not being reported, as in to :unksam:, then maybe they wouldn't want to file a claim. Not making any accusations against the owners, but since I find much of their actions and behaviors questionable in how they have seemed a little eager to point the finger at Linda, well, what's that saying, 'All's fair in love and war' ? :groucho:

 

[Saracen]

Unless the cash was not being reported, as in to :unksam:, then maybe they wouldn't want to file a claim. Not making any accusations against the owners, but since I find much of their actions and behaviors questionable in how they have seemed a little eager to point the finger at Linda, well, what's that saying, 'All's fair in love and war' ? :groucho:

I am sure that I read a post a little way back that stated that your IRS is now involved?