The Director of Student Accounts at Drake University in Des Moines, Iowa was arrested in April for allegedly stealing from the university. Losses are estimated at $600,000. Robert Harlan, 49, had been employed by Drake for about 20 years. Authorities allege the misappropriations date back to 2004. While police say Harlan admitted to taking money, he didn’t believe it amounted to anything close to $600,000. He told police he gave away the money to family, friends, a church and people in need.

Harlan’s neighbors describe Harlan and his family as “nice” and “good neighbors.”

Lessons:

It may take years to confirm how much was stolen and where it went. The university claimed the fund from which the money was taken was like a petty cash fund. Small amounts were taken over a long period of time. This case is pretty typical as embezzlement cases go:

1. The alleged thief was a long time, trusted employee.
2. The theft occurred over a long period of time, 7 years in this case.
3. The perpetrator was liked and likable, at least according to his neighbors.
4. Employees of the victimized organization felt betrayed.
5. The alleged perpetrator had no idea how much he had stolen.
6. The pilfered funds are long gone and there is little to show for them.

Two aspects of this case render it unique:

1. The Robin Hood theme – The alleged thief claims to have given away the money. If that’s true, Harlan is a modern day Robin Hood. More typical scenarios would include some or all of the following pursuits: A lavish lifestyle, gambling losses, a storage unit filled with unused purchases, vacations, jewelry, remodeling, a home theater or shopping to ease depression.
2. Adequate Insurance Coverage – The victim organization has insurance to cover the loss from the theft. Many non-profit organizations lack any crime/employee dishonesty coverage and most businesses have only a small amount ($5,000 – $25,000) in their package policy.

Do you have insurance coverage for crime/employee dishonesty?

Trust. But verify.