Disappearing Printer Ink: A Case Study in Employee Fraud

Despite futurists’ predictions, we don’t live in a paperless business world. Printer ink and toner are still an expensive necessity. Fraudsters depend on ink costing organizations more than caviar. Here’s how to prevent this asset misappropriation and possibly save millions.

In the city of Las Vegas, known for its high-stakes games and big winners, a different kind of gamble was taking place. This time, the player was not a tourist trying their luck, but a municipal purchasing analyst named Jennifer J. McCain-Bray. Over eight years, she managed to steal $6,715,531 worth of toner and ink cartridges from her employer, the Las Vegas Valley Water District.

The Scheme

McCain-Bray’s fraud was simple yet effective. She would order unneeded cartridges and ship them under a fake vendor name to a company in New Jersey that bought and sold toner and ink online. This fake vendor allowed McCain-Bray to misuse the water district’s shipping system, which even paid postage on the stolen cartridges.

The Fallout

McCain-Bray’s scheme came to an end when a coworker became suspicious about a package addressed to the fake vendor. This led to a review of purchasing records, and McCain-Bray resigned in December 2015. She was eventually sentenced to 51 months in federal prison and ordered to pay back the entire $6.7 million.

The Bigger Picture

This case is not an isolated incident. According to the ACFE 2020 Report to the Nations, theft of noncash property, such as office supplies, rose from about 10% to 18% of fraud cases between 2002 and 2020. Despite predictions of a paperless business world, printer ink and toner remain an expensive necessity, and fraudsters are capitalizing on this.

Printer toner and ink are popular theft targets because of their high retail prices and ease of resale.

Key Lessons Learned

The case of Jennifer J. McCain-Bray serves as a stark reminder of the potential for employee fraud within any organization. Here are some key lessons that can be learned from this case:

• Vigilance is Key: Regular audits and checks can help detect fraudulent activities early. In this case, a coworker’s suspicion led to the discovery of the fraud.
• Robust Internal Controls: Having strong internal controls can prevent such incidents. This includes having checks and balances in place for ordering and shipping items.
• Foster a Culture of Ethics: Encouraging a culture of transparency and ethics can deter employees from engaging in fraudulent activities.
• Regular Training: Regular training on ethics and the potential consequences of fraud can help employees understand the seriousness of such actions.
• Encourage Reporting: Create a safe and anonymous way for employees to report suspicious activities. This can help in early detection and prevention of fraud.