Chief Financial Officers are responsible for protecting and making a good use of their companies’ money. As repeating scandals prove, this is not always a case.
Enjoying sports betting is perfectly legal under current American gambling laws, but David N, 39, from New Jersey, has been caught stealing over $10 million from his company while serving as a CFO to feed his gambling addiction. This, the CFO squarely blamed, is due to unstoppable gambling and sports betting habits going back to his high school years.
As Mr. N. grew up and started making large sums of money, his betting habits haven’t died. Indeed, the man only spent more and more to the point where his large executive salary couldn’t support the increasing willingness to bet on sports in United States.
The only way to keep on at the game was to dig for coffers of the company he was supposed to protect.
Heading for prison?
Now fired, he will not only lose his salary but will face the tough justice of the American federal courts. The man, awaiting sentencing, has pleaded guilty to wire fraud and tax evasion. The case goes on in Newark, NJ.
This scam made him join a very large club of financial embezzlers who’s current champion is an All Time Hall of Fame Crook, Bernie Madoff, currently in prison for 150 years.
It is questionable if he will be able to pursue any sort of betting, including mobile betting from prison walls as sneaking a phone into prison isn’t easy.
The remaining question is: what kind of a ridiculous financial control systems can a company have to let $10 million evaporate over a short span of 3 years?