NLESD the Subject of Two Different Fraud Investigations
- posted: Jun. 30, 2016
- Graft and Corruption
The CEO of the Newfoundland and Labrador English School District (NLESD) in Canada recently divulged that the district is currently the subject of two separate investigations for fraud.
CEO Darrin Pike informed Canadian media that two different employees, one of whom is no longer employed with the district, were the subjects of the investigations. He stated that initial information would indicate the cases are not linked, but that they both involve improper use of district resources and/or funds.
The incidents in question were reported in November and January, respectively. Now, the auditor general will be involved in investigating the allegations.
One of the two investigations began when information was passed to the leaders of the school district, which then prompted an internal audit. The other arose from an unrelated investigation. The district then pressed on that issue to uncover the other incident of potential wrongdoing. Pike would not provide any details on the nature of the fraud due to the ongoing investigation.
Reporting fraud in public entities
Fraud may occur in both public and private employment settings. School districts are expected to use funds responsibly, as they are supported primarily on public money. A person who is found to be appropriating funds for his or her own use could be subject to a number of harsh penalties.
There are many protections in place in the United States for people who are made aware of such incidences of fraud. Individuals who become aware of wrongdoing may report it internally or externally, to agencies like the U.S. Securities Exchange Commission (SEC).
For more information and guidance on how to handle fraud allegations within your business or organization, contact a trusted Dallas attorney at Whistleblower Law for Managers.