Jim Stevens Is a Payroll Manager for a Mid-Sized Insurance

question 4

Multiple Choice

Jim Stevens is a payroll manager for a mid-sized insurance company in the southeast. Last year, his performance review was conducted late, so he received a retroactive pay increase. Because he was not authorized to access his own employee records, Stevens stole another employee's password and logged into the payroll system. He manipulated his records to keep the retroactive pay increase in effect in future periods, effectively doubling his intended pay raise. What type of fraud is this?

• A) Larceny of wages
• B) Falsified hours and salary scheme
• C) Commission scheme
• D) Ghost employee scheme

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Definitions:

Future Interest

A legal right to property or asset ownership that will begin in the future, rather than immediate possession.

Life Estate

A property interest that lasts for the life of the holder, after which the property reverts to the grantor or a specified remainderman.

Legal Recourse

Legal recourse refers to the right of an individual or entity to seek legal remedy or compensation through the judicial system in response to a wrongdoing or dispute.

Future Owner

An individual or entity that is designated or expected to become the owner of an asset or property at a future date.