Question

Remy Lewis has just started working as a marketing research analyst for Commercial Casting Company in New York City. He is relocating his family to New York from North Carolina, but they haven’t moved yet. Twice a month, the company pays for Lewis to travel to North Carolina to visit his family and help with the move. During the month of September, Lewis only visited his family once; however, he submitted expense reports for mileage for two separate trips to North Carolina and back. What type of fraud scheme is involved and why?

Answer 1

Answer

Fictitious expense reimbursement type of fraud scheme is involved.

Because

In a fictitious expense reimbursement scheme, an employee submits a request for reimbursement for wholly fictitious expenses. The individual concocts a false expense report and submits it for reimbursement, as opposed to overstating real business expenses or seeking to be reimbursed for personal expenses.

In the situation Remy did not arrive for the second time during September. But still, he made and deposited some false or fake expense documents for the second time in order to get a relinquishment with the company for the second round.

Therefore, this fraud is classified under the fake expenditure reimbursement scheme