Billy Hodges was in charge of preparing checks for the Lightner Company. He entered the payment information into the accounting system, and the completed checks were sent back to him to review. He then forwarded the checks to his supervisor for signing. In each batch of legitimate checks, Hodges would insert checks made payable to himself. When his supervisor was busy, he would take the stack of checks to him and ask him to sign them immediately in order to meet their cycle time deadline. The supervisor would inattentively sign the checks, and then Hodges would extract the checks he made payable to himself. This is an example of what type of check tampering scheme?
A) Concealed check scheme
B) Forged endorsement scheme
C) Forged maker scheme
D) Altered payee scheme

Question

Quizplus · Accepted Answer

Hodges inserted checks made payable to himself among legitimate checks and had them signed by his supervisor without proper review, which is characteristic of a concealed check scheme.

Billy Hodges Was in Charge of Preparing Checks for the Lightner