Daily Lessons from Life 07 August 2012 - Lloyds ex-security chief admits $4.7 million fraud

"Lloyds ex-security chief admits $4.7 million fraud - AFP Aug 07, 2012

LONDON - A former security chief of Britain's Lloyds Banking Group on Tuesday admitted defrauding her employers of 2.4 million pounds (S$4.7 million), prosecutors said.

Jessica Harper, 50, pleaded guilty at Southwark Crown Court in London to taking the money from her employers using false invoices over a four-year period from 2007 to 2011 and then laundering the cash.

"Jessica Harper has today been convicted of the type of crime the bank employed her to combat," said Sue Patten, head of the Crown Prosecution Service central fraud division.

Harper, who was head of fraud and security for digital banking at Lloyds Banking Group, admitted one charge of fraud by abuse of position by submitting false invoices to claim payments totalling 2,463,750 pounds. She also admitted a single charge of laundering the money.

"Harper was expected to safeguard the financial interests of the bank. Instead, she submitted false invoices totalling more than 2.4 million pounds over a period of four years," Patten said.
Defence lawyer Carol Hawley said Harper was selling her 700,000 pound home to repay some of the stolen cash. Harper will be sentenced at a later date."

Intriguing. My most vexing question is: WHY did she do it?

Lessons for me are:

1. until you learn WHY someone do what he or she did, there is no point speculating...;

2. it is almost impossible to detect such frauds committed by the 'insider insider'! Yet, it got found out. So, it does not pay to cheat really the internal fund! :-);

3. How does selling her 700k pound home to repay some of the stolen cash help? Much as we talk about the need to provide those who erred and committed to turning over a new leaf a second chance, it will be hard earned trust that one has to slowly and painstakingly build up. It is not easy to forget in a small place!!

Nevertheless, once caught, the culprits must expect maximum sentencing ...