Unlikely candidates

Barry J. Webne was the perfect employee. Courteous, punctual, dependable. He was well-liked by his bosses and his co-workers at a manufacturing company in Cleveland, Ohio.

And over a four-year span, this perfect employee embezzled $1,258,000 from his company, a crime for which he eventually spent six months in a federal prison in 1996.

These days, Webne travels the country speaking to business groups about the dangers of embezzlement.

His primary advice might seem pessimistic and cynical, but he insists it is all too true: Trust no one.

"I was the perfect employee. And that's the employee you need to watch out for," Webne said recently during an embezzlement seminar held at the Wynfrey Hotel. "You can't trust people anymore. I know you don't want to hear that, but it's a risk you have to face."

Webne's opinion is backed up by former Jefferson County deputy district attorney Roger A. Brown, who now works for Haskell Slaughter Young & Rediker LLC.

"During my time at the district attorney's office, I saw more than one small business in financial ruin because of trusting employees," Brown said. "The temptation (to steal) can sometimes be too much for people to deal with."

That was the case with Webne, who has a master's degree in business administration and accounting from the University of Toledo.

Facing some unexpected financial difficulties, Webne used his position as controller at his former company to begin steadily embezzling small amounts of money.

All the while, he worked hard and maintained an excellent relationship with his boss, which he said is the case with most embezzlers.

"These are not career criminals. These are ordinary human beings who get backed into a corner and make a bad choice," Webne said. "And they often are the people you would least expect. They are the ideal employees."

Although business owners might believe that prison is enough of a deterrent to stop embezzlement, Webne said that's not always the case.

"When I stole for the first time, prison was the furthest thing from my mind. Getting my mortgage paid was on my mind," he said. "You can't rely on the government or the legal system to fix your internal controls. You have to do it yourself."

Anthony Joseph, a partner at Maynard Cooper & Gale PC, said business owners should be aware of some subtle signs that might indicate there is a problem.

"Look for an employee who doesn't take a vacation," Joseph said. "That would be an indication that they need to be there to make sure their books are padded and protected, and no one can catch up with them."

Webne said the easiest way to prevent such fraud from taking place is simply to be vigilant.

Because he had the trust of his boss, Webne said he was never questioned when he did things such as have his boss sign a series of blank checks.

"My boss was not in the game," he said. "He was worried about selling. He didn't question me. He trusted what I said."

Webne suggests asking a lot of questions and taking the time to verify any explanations that are given.

"If your accounting manager is explaining something to you, you'd better be able to verify it. The accounting manager who is honest isn't going to care what you verify," he said. "You're going to know right off the bat where you stand with somebody if you say, 'I appreciate that explanation, but I need to verify it.' If they get defensive, then you have an issue."

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