George Albert was a property manager for a large apartment complex while he was going to college. One of his duties was to collect rent from the tenants. If rent was paid after the third of the month, a late fee was tacked on to the amount due. When a tenant paid his rent late, George would backdate the payment, record and remit only the rent portion to his employers, and pocket the late fee. This is an example of what type of fraud?

Question

Quizplus · Accepted Answer

George Albert's actions are an example of sales skimming, where he diverts a portion of the recorded sales (in this case, the late fees) for his own benefit without recording those amounts in the financial records.

George Albert Was a Property Manager for a Large Apartment