Accounting System, Running Your Business

The Good Lord Forgive Me, My Favorite Embezzlement Story

http://articles.chicagotribune.com/1995-06-23/news/9506230160_1_arthur-andersen-tax-officials-fraud-and-tax-charges

Audit Firm Victim Of Embezzling

June 23, 1995|By Matt O’Connor , Tribune Staff Writer.

Arthur Andersen & Co., which helps set up internal controls for companies to prevent employee theft and fraud, itself was victimized by a longtime employee who embezzled $2.3 million over five years, authorities alleged Thursday.

During 21 years with the Chicago-based firm, Raymond R. Parcon, 42, of Naperville, rose to become a tax manager in the firm’s U.S. Tax Group, from which position he engineered the clever scheme, according to charges filed in federal court.

Among his duties, Parcon had authority to issue checks to federal and state tax authorities to pay Andersen’s employee tax obligations, prosecutors said.

On repeated occasions between mid-1989 and early 1994, he falsified paperwork to make it appear sizable checks had been sent to the Internal Revenue Service and Illinois tax officials to cover the company’s withholding obligations, prosecutors said.

In reality, Parcon submitted those checks, sometimes for hundreds of thousands of dollars at a time as payments on his personal tax debt, and then claimed huge refunds from the IRS and the Illinois Department of Revenue, the charges alleged.

When the money was refunded to him, Parcon deposited the funds in his personal bank accounts, the government said.

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