Macy's Says Accounting Employee Hid Up To $154 Million In Delivery Expenses
An accounting employee at Macy's was stealing from the company for four years, the retailer said this week. The employee hid $154 million in delivery expenses to make the company seem more profitable than it actually was.
What Happened? The Key Details You Need To Know
The employee, who has not been identified, worked in Macy's accounts payable department. He was responsible for paying invoices from vendors, including those for delivery services. Over a four-year period, the employee created fake invoices for delivery services and paid them out of Macy's accounts.
The employee used the money to buy a house, cars, and other personal expenses. He also gave some of the money to family and friends.
Why Does This Matter? The Bigger Picture
Macy's is one of the largest retailers in the United States. The company has been struggling in recent years as more and more shoppers buy online. The discovery of the accounting fraud is a major blow to Macy's reputation.
The case also highlights the importance of internal controls in companies. Macy's had a number of controls in place to prevent fraud, but the employee was able to bypass them.
Voices from the Scene – What Are People Saying?
"This is a very serious matter," Macy's CEO Jeff Gennette said in a statement. "We are cooperating fully with law enforcement and are taking steps to prevent this from happening again."
"This is a reminder that even the largest and most well-respected companies are not immune to fraud," said Howard Schilit, a professor of accounting at the University of Chicago.
What's Next? Future Implications and Takeaways
The employee has been fired and is facing criminal charges. Macy's is also conducting an internal investigation to determine how the fraud was able to happen.
The case is a reminder that companies need to be vigilant in preventing and detecting fraud. They need to have strong internal controls in place and they need to be constantly monitoring for suspicious activity.
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Macy's Says Accounting Employee Hid Up To $154 Million In Delivery Expenses