Definition: Embezzlement is the act of dishonestly appropriating assets by individuals to whom such assets have been entrusted.
There are many different ways to embezzle funds from a Public Company, but over the years accounting standards and internal checks and balances have made this crime harder to execute. You may remember recently of the nice lady in the accounting department who appropriated millions of dollars forcing Clive Peters to go into receivership.
Following on from our Part 1 (READ) investigation of the highest paid contractors at Sensis, we uncovered some startling information. We can confirm that all of the highest paid contractors at Sensis report to and are being paid by Simon Betschel in Product. So how does an employee embezzle funds from Sensis? Well I am glad you asked.
Say you want to receive a kick back directly from Sensis but you want to play it safe. This is where you need an intermediary. Well, you hire a contractor at twice or three times the market rate and then arrange for that contractor to pay you an agreed amount out of those earnings.
Below is the kick-back break down that Simon receives from his implementation managers daily.
- Implementation Manager
- $2,130 per day charged to Sensis
- Implementation Manager (contractor) receive $1300 per day
- Implementation Manager pay’s Simon $730 per day
- Total Simon receives in a year from each manager is $160,600
Total Simon embezzles from both implementation managers at Sensis in a year is $321,200
This form of embezzlement is elegant and simplistic in its purest form but it requires a few key elements for it to be pulled off without a hitch. Firstly it requires management to approve these above market rates and it requires the implementation managers to be intimately known and trusted by Simon.
On the first point we believe management approved these rates not knowing that they were 2 to 3 times above the market rate. On the second point the implementation managers have contracted for Simon in the past and are close friends. Simon’s biggest challenge now is how to launder over $300K annually. And this is where all embezzlers come undone!
As Sensis pays the implementation managers, the scheme has two options. They can either do a direct transfer of funds from the implementation managers bank account directly to Simon’s bank account. This is the faster route but unfortunately it would also leave a nice bank trail. Or the implementation managers could withdraw funds monthly in cash and hand over paper bags on a regular basis to Simon. This causes another challenge for Simon where he then has to bank the cash proceeds. One of the best ways to launder cash proceeds from embezzlement is the purchase of property as the nice lady at Clive Peters managed to do. Cash or bank cheques are handed over to a solicitor who deposit these directly into their trust account which is then paid to the corresponding solicitor of the property being purchased.
Well in all this excitement, there is still light at the end of the tunnel. A police investigation by the Fraud Squad on bank accounts, company directorship and property ownership of all parties involved would quickly identify the ill-gotten gains and allow Sensis to recover all the embezzled funds. Now the question is, will Sensis commence an investigation or sweep it under the carpet to avoid any embarrassment or impact to Telstra’s share price. With the recent news of Sensis losing revenue that will continue for the next 3 years, this is not the ideal time for Bruce to put the spotlight on serious corruption within Sensis.
Show me the MONEY !!!!
This Simon should be sacked immediately. There are contractors within Sensis that have made a fortune overs the years, as they have been there for more than five years and have not been offered a ermanent role within Sensis which would bring down the costs. Get rid of the contractors and the overheads will come down instead of redunancies of permanent staff members. Sensis needs to get their act together and think of the savings by actually having staff and not contractors everywhere throughout the company.
Simon should be escorted out of the building. What a weasel of a crook !!!
This all makes sense. Simon recently purchased a property from his relatives in the country yet he still lets them live in it.
It’s clear now this was to wash the cash from the scam. Can’t believe this went on so long with no action from corporate affairs or HR.
Bet they try to sweep all this under the carpet
Has Simon been fired?
I have heard that more redundancies occurred late last week (week ending the 17/04/2011) can Sensis Watch confirm or deny these claims?
Gundas
Yes, there are more redundancies planned. Robert Rath (GM) is just one.
I heard Simon has been kicked out as yellow digital manager. Is this true?
No, he hasn’t been kicked out yet. Simon has been demoted from managing Yellow Digital to managing Busines Development. I think this translate to he has a greater mandate to manage ‘under the table deals’ into his back pocket 😉
Since coming on board, all of Simons strategies have been a flop. I guess thats why he needs to do back room deals. So sad that Thomas didnt fire him before he left.
Simon is now working out of Sydney. He has lost all respect in Melbourne from his dodgy deals and has become a lame duck. He is almost full time in Sydney sucking up to Gerry as a last ditch effort to stay at Sensis. I am amazed that police have not charged Simon and his 2 cohorts with fraud and embezzlement.
This dumb fuck is getting smashed by business people all over the country with his shit fucking digital roadshows that are nothing more than patronising, flimsy bits of no shit information. Suck balls.
LOL. Whilst I applaud your use of the “suck balls” insult (a classic to be sure) I think a more appropriate insult in this instance would be “go eat a dick”.
wow. pretty serious allegations. have you got any proof whatsoever that he is receiving any kick backs?
Otherwise this is just gossip.
No comment about whether he is good at his job and has made stupid decisions, but incompetence is a long way from criminality.
Pretty easy to do this on an anonymous website. At least put your real name to fairly serious allegations of criminal behaviour so if you they aren’t true he can sue you for defamation.