Chinese HR Manager Defrauds Company by Creating 22 Fake Employees
A Chinese HR manager, identified as Yang, embezzled over US$2.2 million by creating 22 fake employees and manipulating payroll records. His scheme involved fabricating employment records and redirecting salary payments to a controlled bank account, exploiting a lack of oversight in the payroll management system.
In a striking case of fraud, a human resources manager from Shanghai, known by the surname Yang, devised a plan to embezzle over 16 million yuan (approximately US$2.2 million) by fabricating 22 non-existent employees. As the manager responsible for payroll at a labor services firm, Yang discovered that he had complete autonomy over employee placement without any checks on payment procedures.
Yang initiated his scheme by creating false employment records for an employee identified only by the surname Sun. He subsequently applied for salary payments meant for this fictitious employee and directed those funds to a bank account he controlled, avoiding direct ownership.
When the labor services company acknowledged a discrepancy and noted that Sun’s salary had not been deposited, Yang misled them by stating that the tech company had postponed the payment. This fraudulent activity highlights significant lapses in oversight within the organization’s payroll practices.
This incident reveals vulnerabilities in payroll management systems, emphasizing the need for stringent oversight and checks to prevent fraudulent activities. Yang’s ability to exploit the lack of a review process has resulted in significant financial losses for his company and underscores the necessity for improved employee verification protocols.
Original Source: www.scmp.com
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