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JUDGMENT OBTAINED AGAINST FORMER EMPLOYEE OF ATLANTA UNION MISSION

JUDGMENT OBTAINED AGAINST FORMER EMPLOYEE OF ATLANTA UNION MISSION

Rumsey & Ramsey obtained a judgment for $141,489.35 against a former employee of Atlanta Union Mission who used the credit of Atlanta Union Mission to obtain equipment and material that were not used in the business of Atlanta Union Mission. The Atlanta Union Mission accounting department investigation that uncovered the wrongdoing was triggered by an unusually large number of purchases of HVAC units and Freon bottles with Atlanta Union Mission credit. A subsequent inventory of HVAC units on Atlanta Union Mission properties, a provider of housing for the homeless and indigent, revealed that the serial numbers of the HVAC units purchased by the former employee with the credit of Atlanta Union Mission could not be matched up with the HVAC units on Atlanta Union Mission properties. Other equipment and material purchased by the former employee also could not be located or accounted for in the investigation. An employee dishonesty insurance claim was filed with Atlanta Union Mission’s insurance carrier, who reimbursed Atlanta Union Mission for its losses. Thereafter, Rumsey & Ramsey filed a subrogation lawsuit on behalf of the insurance carrier against the former employee. Companies should strive to have proper oversight and accounting controls in areas where improper usage of company credit and funds may occur. It is also prudent to periodically review your company’s insurance policies to evaluate your company’s existing insurance coverages and any possible gaps in coverage that exist when compared with the insurable risks that your company has to guard against in its business. Please contact Rumsey & Ramsey at (770) 394-9400 to discuss your insurance case or other legal inquiry with an attorney.

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