Community Chat

[BlueTopazGem]

Feds Indict QVC manager for Allegedly Being Ringleader in a Nearly $2 Million Bogus Invoice Scheme

FYI:

This article appeared in the Philadelphia Inquirer today:

http://www.philly.com/philly/business/20150925_Feds_indict_QVC_manager_for_allegedly_being_ringleade...

[Buck-i-Nana]

a studio Lighting Manager and QVC was actually the victim.  Your post, as well as the headline of the linked article, sure are sensationalized to make it appear that perhaps QVC cutomers were the victims.

[hoosieroriginal]

Companies let their guard down - I worked for a law firm that had not one, but two office managers who embezzled from the company.  Soon after the second incident, one of the attorneys personally signed every check that left the place.  It's easily done. 

[NoelSeven]

It doesn't sound like he was a part of the Q, he was trying to defraud them and he got caught:

"Douglas S. Rae, a 58-year-old Bethlehem man, faces 20 years in prison, an $8.75 million fine and paying full restitutiton on charges of mail fraud, wire fraud, conspiracy to commit wire fraud and money laundering, federal prosecutors say in court documets filed last week.

Rae submitted fake invoices to QVC through two companies he controlled, Lighting Equipment Sales and Service Inc. and Lighting Products International Inc., according to the indictment."

[NoelSeven]

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@Buck-i-Nana wrote:

a studio Lighting Manager and QVC was actually the victim.  Your post, as well as the headline of the linked article, sure are sensationalized to make it appear that perhaps QVC cutomers were the victims.

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I thought it sounded like that, also.

[ROMARY]

There's always someone somewhere doing not-so-nice things..........Wish people like that would listen to the Pope and other folks who demonstrate/are good examples.

[Puppy Lips]

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@NoelSeven wrote:

It doesn't sound like he was a part of the Q, he was trying to defraud them and he got caught:

"Douglas S. Rae, a 58-year-old Bethlehem man, faces 20 years in prison, an $8.75 million fine and paying full restitutiton on charges of mail fraud, wire fraud, conspiracy to commit wire fraud and money laundering, federal prosecutors say in court documets filed last week.

Rae submitted fake invoices to QVC through two companies he controlled, Lighting Equipment Sales and Service Inc. and Lighting Products International Inc., according to the indictment."

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It states at the end of the article that he was employed by QVC from 1997 to 2013.  He certainly could work there and have other supply businesses as well.  So he was gettng a paycheck from QVC, as well as supposedly "selling" them equipment from his other companies and getting paid from that too.  Anytime there is fraud in a company, their customers can indeed be affected in the way of higher prices to support their operating expenses, whether they were legitimate or not.  QVC let this guy go unchecked for far too long.

[howwhatwhen]

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@Puppy Lips wrote:

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@NoelSeven wrote:

It doesn't sound like he was a part of the Q, he was trying to defraud them and he got caught:

"Douglas S. Rae, a 58-year-old Bethlehem man, faces 20 years in prison, an $8.75 million fine and paying full restitutiton on charges of mail fraud, wire fraud, conspiracy to commit wire fraud and money laundering, federal prosecutors say in court documets filed last week.

Rae submitted fake invoices to QVC through two companies he controlled, Lighting Equipment Sales and Service Inc. and Lighting Products International Inc., according to the indictment."

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It states at the end of the article that he was employed by QVC from 1997 to 2013.  He certainly could work there and have other supply businesses as well.  So he was gettng a paycheck from QVC, as well as supposedly "selling" them equipment from his other companies and getting paid from that too.  Anytime there is fraud in a company, their customers can indeed be affected in the way of higher prices to support their operating expenses, whether they were legitimate or not.  QVC let this guy go unchecked for far too long.

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My thoughts exactly yet the Q will track customers purchases with such a fine toothcomb and should you return too may items they'll send you the "letter" all while getting "taken" by one of their own for years, lol

[ValuSkr]

Interesting.  The fraud was perpetrated on QVC itself, not on Q customers.  As I undertand it, he was a Q manager who directed Q business to personal friends or companies in which he had a financial interest.  Those friends and companies submitted bogus invoices, he signed off on them as a Q employee, and Q paid the invoices.  Companies usually have internal controls and policies to prevent this sort of thing, but circumvention happens.  It's embarassing for the company, which may be discouraged from prosecuting due to ensuing publicity (like this article).  Yet it's important to prosecute for no other reason than to let employees know this kind of behavior isn't tolerated.

[Lotus]

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@ValuSkr wrote:

Interesting.  The fraud was perpetrated on QVC itself, not on Q customers.  As I undertand it, he was a Q manager who directed Q business to personal friends or companies in which he had a financial interest.  Those friends and companies submitted bogus invoices, he signed off on them as a Q employee, and Q paid the invoices.  Companies usually have internal controls and policies to prevent this sort of thing, but circumvention happens.  It's embarassing for the company, which may be discouraged from prosecuting due to ensuing publicity (like this article).  Yet it's important to prosecute for no other reason than to let employees know this kind of behavior isn't tolerated.

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It ultimately trickles down to the customer.