Skinner Collection Clerk Indicted for $724,000 Theft

Linda Block of Worcester Telegram is reporting a 72 year old auction clerk at Skinner has been indicted for the theft of $724,000.00. Joanne Shea is charged with allegedly making false entries into corporate books and the grand larceny theft. Shea had been employed at Skinners since 1993, and was recently fired. The "lapping" scheme was discovered after an internal audit of Shea's entries and transactions as an accounts receivable clerk.

Block of the Telegram states how the scheme worked. Shea received cash payments from customers for auction items, but rather than depositing the cash payments into the company’s accounts, authorities allege that Ms. Shea would keep the cash for herself. Investigators say that to cover the missing cash deposits, Ms. Shea covered the paid cash invoices she stole by applying incoming check payments of equivalent amounts on the company’s books. Upon receipt of these check payments, Ms. Shea allegedly deposited the payments into the company’s account, but would apply it to the “open,” or unpaid, cash payment she had stolen previously. According to authorities, Ms. Shea would then use subsequent check payments to cover the previously deposited but “open” check payments. Even when misallocating payments, authorities allege, Ms. Shea would provide accurate information to the company’s inventory system to ensure that paid customers received their items upon payment when she left their invoices as “open.” In addition to stealing cash payments, authorities allege that Ms. Shea took items that were up for auction without paying for them. Investigators say Ms. Shea had her own employee account with the company, and she could use this account to bid on, and purchase, auction items. Ms. Shea allegedly did not pay for many of the items, but rather used the money from payments made by customers to cover the outstanding, unpaid balances on her personal client account. Ms. Shea then “lapped” subsequent incoming checks to cover these misapplied payments, according to authorities.

To read the Telegraph article click HERE.