5 Dealer Employees Steal More than $10 Million Plus
independent audits, background checks, vendor audits, and reconcile records regularly and segregate duties.
Ultimately, a bank officer alerted the dealership that an employee was using dealership checks to pay personal bills, including credit card and mortgage payments. The employee has been indicted on more than 100 counts of grand larceny and other charges. The dealer has also filed a civil suit against the employee. Both cases are pending. Best Practices Internal controls and an accountant who knows your business are critical to preventing similar theft in your dealership. Dealers should conduct
A judge has ruled that a local dealer can seek to recover $10 million dollars from their accounting firm which is alleged to have committed malpractice when it failed to detect that employees were embezzling from the dealership. The accounting firm is accused of failure to perform their duties and the dealership may not have suffered the loss if the accountants had properly performed their jobs. According to the story, an office manager and other employees allegedly stole millions over years.
6 New York Launches Nation’s First Recovery Tax Credit EMPLOYERS WHO HIRE INDIVIDUALS IN RECOVERY FROM DRUG, ALCOHOL ADDICTION ARE ELIGIBLE
Hoping to boost employment and reduce stigma, legislative leaders included a Recovery Tax Credit Program as part of the state budget, allocating $2 million a year for employers who hire individuals with a substance use disorder in their past. “As the opioid epidemic continues to impact families and communities across the state, we remain commit- ted to ensuring individuals who are in recovery have the support they need to lead healthy lives,” Gov. Andrew M. Cuomo said in a statement. “This tax incentive will help remove the stigma surrounding addiction and ensure those battling this disease can create a stable and sustainable path to recovery.” Starting in 2020, eligible employers can receive up to $2,000 in tax cred- its for every eligible person they hire
who has worked a minimum of 500 hours. Credits are available for both part- and full-time employees. The state Office of Alcoholism and Substance Abuse Services (OASAS) will administer the program in con- junction with the Department of Taxation and Finance. An employer that provides a recov-
ery-supportive environment and otherwise meets the program’s requirements must apply annually to OASAS to claim the credit for eligi- ble individuals employed during the preceding calendar year. Applications for the first year of the program will be due by January 15, 2021, for eligible individuals employed during the 2020 tax year.
4 Greater New York Automobile Dealers Association • www.gnyada.com The Newsletter • June 2019