Featured Article

Keys to the kingdom: Oilfield fraud

Oilfield services company uses billing schemes to siphon $2 million from former employer

Jerry thought he had it made in the shade. As he began his company maintaining oil rigs and equipment, he'd found ways – the keys to the kingdom – to fraudulently bill his former employer as a contractor. He knew how to thoroughly exploit the system he'd helped devise. Learn lessons from this fictionalized version of an actual $2 million fraud case.

He didn’t take long to come up with the idea. As he put down the large Mason jar of sweet tea, Jerry scribbled down some additional notes in his company notebook, which he always kept by his side. He used it as some might use a thumb drive. It was a repository of his operational notes, passwords, musings and his business plans. Housed in this notebook was his dream to bring in more money than he ever thought possible.

While his dream was still a few months away from taking off, the reality was, Jerry needed cash today. He’d just paid for his eldest daughter’s wedding, his twin sons had just begun their sophomore year at college, and his youngest teenage daughter — who’d always had a sense of entitlement — was asking for a new car for her 16th birthday.

Jerry had also recently complained to several colleagues about the bills piling up, along with the 20 miles of his Texas ranch that needed new fencing. And his wife’s cosmetic surgery invoices were coming in fast and furious. The pressure for additional cash was heavy on his mind. These money woes took him away from the half-eaten chicken-fried steak and cold lump of mashed potatoes on the plate.

“No time to eat,” he said quietly as he scooted his chair back. He stood up, drained his tea, picked up the bill and left $20 on the counter as he quickly left the restaurant.

For full access to story, members may sign in here.

Not a member? Click here to Join Now. Or Click here to sign up for a FREE TRIAL.