Embezzlements tend to occur in many organizations due to many reasons that are beyond the control of the organization. Many organizations use forward-looking statements to estimate the present anticipations and projections of their organization. Since the forward-looking statements are subjected to risks and uncertainties, organization can experience embezzlement making the actual figures to differ with the expressed figures that are in the statements (USSEC, 2008, p.
1).
In 10th of March 2006, a protest was filed by North McDonough Properties, LLC in the court of Circuit in Montgomery County against National Storm Management, Inc claiming that the company had failed to disburse for the supplies that was supplied by North McDonough Properties, LLC (USSEC, 2008, p. 35). Embezzlement in National Storm Management, Inc National Storm Management, Inc had embezzled funds from North McDonough Properties, LLC worth $55,600, leading to the filing of complaint by North McDonough Properties, LLC in the circuit court in Montgomery County.
On March 14th, 2006 another compliant was as well filed in county court in Hinds County of Mississippi by Roofing Supply Group, Inc.
claiming over $ 131, 100 of damages from National Storm Management, Inc. On March 22nd, 2006, Trucolor, Inc. filed a petition in county court in Dallas County claiming that National Storm Management, Inc and Trucolor were engaged in a transaction which led to National Storm Management, Inc attaining one million dollars promissory note from Trucolor. Since the promissory note could be converted to fie million shares debt, National Storm Management, Inc converted it into $0. 20 per share values (USSEC, 2008, p. 35).
National Storm Management was claimed by Trucolor to have embezzled dilute present shares reducing the value of the stock of the company therefore securing the promissory note.
On the 9th of May 2006, another complaint was filed by Mark Hasson in Fourth Judicial District Utah County’s District Court. The case that was filed was Case number 060401449 claiming that National Storm Management and other companies had violated the Federal Telephone Consumer Protection Act and Utah Telephone and Facsimile Solicitation Act by sending a spontaneous advertisement using a telephone fax machine to Mark Hasson.
Another complaint was filed by Shelter Distribution, Inc. on the 25th of May 2006 in Superior Court of Marion County claiming that National Storm Management owed goods worth $290,000 to Shelter Distribution (USSEC, 2008, p. 35). The former bookkeeper of National Storm Management had misappropriated the funds of the company such as income and expenses. The embezzlements that were discovered were records from March 2004 (USSEC, 2008, p. 36).
In conclusion, National Storm Management and Halifax Corporation, both companies have been engaged in embezzlement case which caused an imbalance in the financial statements of the two companies. In the case of National Storm Management, many companies had filed alleges claiming that the company had failed to pay for goods. Some of the companies that filed cases included companies such as North McDonough Properties, LLC, Roofing Supply Group, Inc, Shelter Distribution and Trucolor, Inc.
It is also evident that the reasons why many companies are engaged in embezzlement is due to bookkeeper are found guilty of fraud. In both, National Storm Management and Halifax Corporation the bookkeeper were found guilty of being engaged in fraud leading to the embezzlement cases in the companies (USSEC, 2008, p. 36).
References
United States Securities and Exchange Commission. (2008). National Storm Management, Inc. Form 10-SB/A. Washington D. C. : Fran Finnegan & Company. Retrieved December 17, 2008, from http://www. secinfo. com/d11MXs. v1nZu. htm
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