New York Case Underscores Need for Internal Controls
A recent article in the Albany Times-Union about the appeal of a federal bank fraud conviction also contains an important reminder for the unclaimed property community. The underlying fraud conviction was based upon 3 individuals’ allegedly wrongful transfer of more than $2.4 million in bank-held unclaimed property to accounts controlled by the defendants. One of the defendants was a bank employee who apparently had access to the unclaimed accounts, and made fraudulent payouts to the other defendants.
While most unclaimed property professionals are primarily concerned with the “ends” of the unclaimed property pipeline (that is, making sure all dormant items get flagged for inclusion in the unclaimed property systems, and making sure all unclaimed property gets properly reported) this article is a good reminder that property must be safeguarded while it is the the process as well.