Commentary

Loss prevention case study: 2nd shift driver confesses to stealing $5k in 5 months

A route driver considered to be a model employee was able to steal cash on a regular basis because of insufficient supervision.

Image courtesy of iStock.

May 31, 2021 by Mark Manney — Founder/CEO, Loss Prevention Results Inc.

This week I will review a case study from an actual investigation that demonstrates a loss caused by a gap in the chain of cash custody, how insufficient supervision contributed to an employee's greed and how a properly constructed interrogation elicited a confession.

A well established vending company noticed that chronic cash shortages in a number of large industrial accounts were accelerating steadily but were masked by meter reading "noise." Meter readings were not being taken or were not being read or recorded correctly by a number of vending attendants.

When a particular delivery driver who worked second shift had his route changed, the constant losses in one account he no longer serviced cleared up. He became the main suspect and was focused on.

This delivery driver was considered a model employee; he had worked for the company before leaving on good terms and was eagerly rehired. He was always on time, did his job and was well liked.

The investigation begins

After a pattern of constant low dollar losses, $2 to $5 dollars from almost all of the 30 machines in one account was thoroughly researched. Two managers counted a number of collections to document this "pre audit" before the driver made the delivery drop off/cash pick up.

He had picked up the cash from a roll top safe that only he had the key to. Then the collections were counted by both managers documenting the "post audit." The results provided evidence of a $76 loss including a $20 bill and two $10 bills from a specific bag.

A case jacket was built for this case. The delivery driver was interrogated and admitted on audio tape, with a witness, to skimming $3to $5 at a time from various unsecured collections for five months.
His average theft was $250 per week for a grand total of $5,000 since he had been rehired. He also gave a written statement to the two police officers that were called to the scene after he fully confessed to the company. He was handcuffed, arrested and charged with a felony. When he was searched by the police, they discovered he had over a $1,000 in cash in his wallet.

A case of insufficient oversight

This case was a classic case of the following:

A gap in the cash chain of custody and unsecured attendant collections.
The greed growth factor. The delivery driver admitted starting off stealing small and sporadically. No one said anything, so his thefts grew in both frequency and severity to the point of daily addiction. He had no idea how much he had actually stolen and was stunned when his daily/weekly admissions were eventually totaled.
The power of a surprise, carefully worded, audio taped interrogation pulled out a confession of all the past thefts.

Being able to give the case to the police on a silver platter ensured the most powerful statement that can be made to all the employees — a dishonest employee leaving in handcuffs.

Since this special investigative bulletin was written, the delivery driver's lawyer offered the district attorney and the vending company a plea deal of immediate full restitution of $5,000 for a reduction in charges from felony to misdemeanor. The company agreed and a cashier's check was delivered in court for $5,000 the day of sentencing.

The driver received 30 hours of community service and a criminal trespass warning to stay away from any and all of the company's property and accounts.

Vending