Car Dealer Lawyer

A recent article in the Suwannee Democrat reported that a bookkeeper was arrested in Florida for allegedly embezzling $100,000.  According to the police report, the bookkeeper took cash from the daily deposit over a six month period.

Last week I wrote a post called “12 Things That Keep You Awake at Night.”  One of the things that I suggested might keep you awake at night is the fear that your controller is a compulsive gambler.  That came from a case where a long-time controller had stolen money for years to support her secret gambling habit.  Whether the motivation is gambling, desperation, or just greed, a dishonest controller or bookkeeper can be a dealer’s worst nightmare.  Not only does it hurt to lose the money, but usually the bookkeeper or controller is the dealer’s most trusted employee.  

When I was a general manager we did a few things to keep everyone honest.  First, the mail came straight to me, and I always opened every piece.  I can’t tell you how many bogus invoices that I caught.  Online banking and email makes it more challenging for a dealer to filter and review all of the financial information.  I also signed every check, and insisted that the supporting documents accompany the check.  Finally, we always had outside accountants do an independent audit of our books.  These are pretty basic steps, but I am surprised that some dealers don’t follow these practices.

In the Suwannee case, I’m not sure how this bookkeeper was able to get $100,000 from daily deposits, but if there is an accountant or a controller reading this, I would be interested in your comments.

“$100,000 Embezzled from Dealership, Report Police,” Suwannee Democrat