Fraud: payroll redundancy payments

Fraud: payroll redundancy payments

Duplicated redundancy payments

A fraudster has been jailed for 32 months after stealing £300,000 while working in the payroll department of delivery firm Yodel.

At Liverpool Crown Court , Michael David McDonough, 31, of Pateley Close, Kirkby, was sentenced after admitting fraud by false representation against his then employer.

 

He duplicated redundancy payments so cash was paid into his eight bank accounts. He also paid money into bank accounts belonging to his family and friends, who were all unaware of the criminal source of the cash.

Detective Inspector Phil Mahon from Liverpool CID said: “We are pleased that a two-year investigation into the lies, deceit and, ultimately, the fraud committed by Michael McDonough has resulted in a custodial sentence.

“He was trusted to make payments to colleagues and he breached that trust for his own criminal gain.”

Mitigating payroll fraud risk

It is not uncommon for employers who have internal resources doing their payroll to unfortunately find that fraud has occurred.

During 2015 there have been many cases of payroll fraud including

  • Duplicated Redundancy payments
  • Creating fake employees and making payments to own bank accounts
  • Extra deductions that look like they are from HMRC
  • Auto-enrolment fraud
  • Tax status of employees
  • False payment of Statutory payments

Outsourcing your payroll can help to mitigate this risk, by adding another review level to changes within your payroll. Call A.S.A.P. Office Services on 01621 829632 for help or advise.