|
This topic comprises 2 pages: 1 2
|
Author
|
Topic: Former theater manager charged with embezzling nearly $116,000
|
|
Adam Martin
I'm not even gonna point out the irony.
Posts: 3686
From: Dallas, TX
Registered: Nov 2000
|
posted 04-07-2007 12:39 AM
The whole article is below.
quote: Former theater manager charged with embezzling nearly $116,000
Gary Klien Article Launched: 04/05/2007 11:32:15 PM PDT
A former manager for Century Theatres in San Rafael was arraigned Thursday on charges he embezzled nearly $116,000 that was supposed to be given to management trainees for per diem expenses, authorities said.
Christopher O'Kelley, a 35-year-old Napa resident, is accused of stealing the money from September 2002 through April 2005, when he was in charge of the movie house chain's training program for general managers, according to court documents.
Management trainees in the program were often relocated to different areas to learn new job functions. During these relocations, O'Kelley was supposed to pay the trainees a weekly per diem of $175 for food, plus reimbursements for some out-of-pocket expenses.
O'Kelley kept a "large sum" of petty cash in his office at Century's San Rafael headquarters to pay the trainees' expenses, police said. The trainees submitted receipts to O'Kelley for reimbursement.
Officials at Century Theatres contacted the San Rafael Police Department in May 2005 after conducting an internal audit of the management training program. According to a court affidavit, Century officials said they discovered that O'Kelley had been skimming money for years by several means, including:
- Charging Century for the trainees' food allowances but giving the trainees less than the full amount they were entitled to.
- Submitting false per diem reimbursements for money that had not been paid to the trainees.
- Submitting reimbursement statements for nonexistent expenses.
- Cashing reimbursement checks that were intended for trainees and keeping some or all of the money;
- Submitting duplicate reimbursement reports for the same items;
- Filing reimbursement reports for employees who were not in the training program.
Trainees told Century investigators they were afraid to question O'Kelley about the money they were owed because he was their boss.
After interviews with Century officials and trainees, police interviewed O'Kelley last year at the San Rafael Police Department. O'Kelley admitted he "mishandled" company funds but said he thought the amount was less than $10,000, according to an affidavit filed by Deputy District Attorney Linda Witong.
Century calculated the suspected losses to be $115,974.36.
O'Kelley told police he needed money because he had bought a third residence in Napa and his finances were tight, Witong said. O'Kelley also said he had stocked and opened a sports memorabilia store, but the business failed.
In October 2006, San Rafael police referred the case to the Marin County district attorney's office for prosecution. The district attorney's office filed an embezzlement charge on Oct. 31, but O'Kelley failed to appear for an arraignment. Authorities obtained an arrest warrant, and O'Kelley was taken into custody on Saturday.
O'Kelley, contacted at the Marin County Jail on Thursday night, declined to comment on the case. He was scheduled to enter a plea Friday in Marin Superior Court.
His bail is set at $115,000.
Century Theatres was sold last summer to Cinemark USA, a movie theater chain based in Plano, Texas.
| IP: Logged
|
|
|
|
|
|
|
|
|
|
|
Scott D. Neff
Theatre Dork
Posts: 919
From: San Francisco, CA
Registered: Oct 1999
|
posted 04-09-2007 12:41 PM
I don't know if there's too much I can say seeing as the case is still open.
I can say for sure though, that everybody who worked on this case is proud of the work that was done. For years we had suspected something was off, but it took a number of things falling into place to really zero in on the problems.
One thing was that in the last two years, Century had hired on a VP of Loss Prevention. He turned our department away from auditors who might find something, into investigators who would look at the locations with numbers that didn't add up or issues that didn't make sense. This allowed other parts of the company to come to us and point out things they always thought didn't add up in their scope of work.
I know one of the tip offs was a GM Trainee submitting a dinner receipt to a location that was being audited, and then another auditor (Adam I think) asking "Hey, don't you get reimbursed through the training program???" It's odd how simple this job can be at times... just figure out what doesn't make sense, and ask a lot of questions.
Anyway, thanks to everybody for their kind words. Most of the time Auditing / Loss Prevention is a thankless job. A lot of people think you're just out to get them in trouble. What the honest employees don't realize is that if they make the effort to follow the rules, the bad guys will stick out like a sore thumb. If the bad guys start getting picked off, then all the execs will have the time to focus on the positive instead of being negative all the time.
| IP: Logged
|
|
|
Randy Stankey
Film God
Posts: 6539
From: Erie, Pennsylvania
Registered: Jun 99
|
posted 04-13-2007 01:15 AM
quote: Scott D. Neff A lot of people think you're just out to get them in trouble.
Just tell them this: For every dollar a company loses because of theft, they have to make an EXTRA DOLLAR'S profit to cover it.
SO... if somebody steals a hundred dollars today, you have to make TWO hundred to break even again.
BUT... If your company has a 10% profit margin, that means they only get to keep 10¢ out of every dollar they make.
THEREFORE... You have to make $2,000 worth of extra sales, OVER AND ABOVE what you normally sell, to get back to where you were before you lost that original $100.
Ask them, "When the company doesn't make that money back, WHAT do you think they are going to do?"
Cut expenses? Right?
Just WHERE do you think they are going to cut those expenses? The answer: PAYROLL!
So, when you come right down to it, for every dollar the company loses to theft, TEN dollars come out of your paycheck!
Even if the person is a dyed-in-the-wool Libertarian they MUST agree with that logic.
| IP: Logged
|
|
Christopher Crouch
Expert Film Handler
Posts: 128
From: Holywood, ca, usa
Registered: May 2006
|
posted 04-13-2007 03:08 AM
quote: So, when you come right down to it, for every dollar the company loses to theft, TEN dollars come out of your paycheck!
Excellent breakdown.
In addition to an individual's theft, sloppy work, and/or mistake, one has to consider there are "X" number of people/theatres in a given chain that could be doing the same thing, which, if left unchecked, could add up to some staggering numbers.
| IP: Logged
|
|
|
All times are Central (GMT -6:00)
|
This topic comprises 2 pages: 1 2
|
Powered by Infopop Corporation
UBB.classicTM
6.3.1.2
The Film-Tech Forums are designed for various members related to the cinema industry to express their opinions, viewpoints and testimonials on various products, services and events based upon speculation, personal knowledge and factual information through use, therefore all views represented here allow no liability upon the publishers of this web site and the owners of said views assume no liability for any ill will resulting from these postings. The posts made here are for educational as well as entertainment purposes and as such anyone viewing this portion of the website must accept these views as statements of the author of that opinion
and agrees to release the authors from any and all liability.
|