Shanghai Manager Embezzles US$2.2 Million Through Fake Employees Scheme
A Shanghai HR manager, Yang, created 22 fake employee records, embezzling 16 million yuan (US$2.2 million). His actions went unnoticed for eight years due to gaps in payroll oversight. Discovered in 2022 when a tech company’s finance department questioned an employee’s attendance, Yang was sentenced to over ten years in prison and ordered to repay stolen funds, highlighting systemic vulnerabilities.
A human resources manager in Shanghai, known by the surname Yang, orchestrated an elaborate scheme involving the creation of 22 fictitious employees. By generating fake employment records, he embezzled a total of 16 million yuan (approximately US$2.2 million) in salaries and severance payments, transferring the funds to a personal bank card not registered in his name. Yang’s position granted him sole authority over employee placements, and the lack of a review process for salaries enabled his fraudulent activities to go unnoticed for several years.
The fraud began in 2014 when Yang established the employment record for an imaginary employee named Sun. Initially, Yang claimed that delays from the tech company accounted for the missing salary payments when the labor services firm detected discrepancies regarding Sun’s account. It wasn’t until 2022 that the finance department of the tech company questioned the situation, noting that while Sun exhibited perfect attendance, he was never seen in the office.
The investigation that followed reviewed both attendance records and bank transactions, ultimately revealing Yang’s fraudulent activities spanning nearly a decade. He faced legal consequences, receiving a prison sentence of 10 years and two months, in addition to being stripped of political rights for one year and ordered to repay 1.1 million yuan in stole funds while his family was required to return an additional 1.2 million yuan. This case highlights significant flaws within the payroll system that allowed Yang to commit such a far-reaching embezzlement.
The case garnered significant attention on social media, with many criticizing the labor services company’s payroll oversight. Observers expressed outrage at Yang’s audacity, particularly given the real employees who faced issues with unpaid wages. Other cases of fraudulent practices in China have been reported, exemplifying broader issues concerning the abuse of authority and financial misconduct.
The fraudulent activities perpetrated by Yang serve as a critical reminder of the vulnerabilities present in payroll systems and the need for robust oversight and verification processes. The significant amount embezzled underscores the extent to which individuals may exploit opportunities within poorly regulated frameworks. The public outcry and increased scrutiny following this event suggest a demand for improved anti-fraud measures to prevent similar incidents in the future.
Original Source: www.channelnewsasia.com
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