Wilson Pleads Guilty to Misappropriating Insurance - Essay Example

Griesedeck was asked to include the $5,000 to the number of legal fees that they would charge Missouri Employers Mutual Insurance Company. Roger Wilson approved the bill from Mr. Griesedeck despite being aware that the funds had been used for a political donation. In 2009, Douglas Morgan made a request for a $3,000 donation that would be recovered in the same manner as the first one (Lippmann, 2012). Fortunately, the company legal team noticed the bill was strange during a routine review of all legal matters.

As a result, Wilson was forced to give Mr. Griesedeck the money-back using his personal savings. The type of fraud was done using the expenditure cycle. Legal fees for the company are part of the expenditures that are regularly paid. The use of the expenditure cycle was meant to help hide the fraud due to the routine nature of meeting legal bills. Expenditure cycle is full of loopholes that many people use to misappropriate funds. Mr. Wilson, who pleaded guilty to the crime of misappropriating funds, faces one year in jail or a fine of $100, 000 dollars.