In a shocking incident, a human resource (HR) manager in China has been apprehended for running embezzlement operation. The HR manager created 22 fake employees and made at least 16 million Yuan which amounts to approximately Rs 18 crore in salaries and severance payments. The accused has been identified as Yang, who worked at a labour services company in Shanghai. He was tasked with managing payroll for workers of a tech firm, reported the South China Morning Post.
How Did He Pull Off Fraud?
Yang moved forward with the idea after he got to know that he had sole authority over employee placements. No salary review process also supported his plan. He used this benefit to pull off the fraud. At first, he created a fictitious employee named Sun and requested salary payments under his name. Yang then redirected the funds to his bank card instead of depositing the salary into Sun’s account. Moreover, according to the report, the bank card was not in his name.
How Was He Caught?
When it came to notice of the labour services company that Sun had not received his salary, Yang claimed that the payment had been delayed by the tech firm. It’s reported that he had fabricated records for 22 fake employees staring form 2014. The exact salaries of these ghost employees have not been disclosed.
The fraud came to light in 2022, when the finance department of tech firm noticed that Sun had full attendance and received timely salaries. But suspicion grew when it was reported that no one had ever seen him at work. The matter was reported to the authorities who initiated investigation into payroll records and bank transactions. The investigation disclosed Yang’s fraudulent activities over the years.
Following his arrest, Yang was sentenced to 10 years and two months in prison for embezzlement. Along with the punishment, he was deprived of political rights for one year and fined. Yang was ordered to repay 1.1 million Yuan of the stolen money.
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