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The Case of the Wayward College Dean: An Examination of Alleged Fraud

Kathy S. Pollock, Janet C. Papiernik
January 1, 2016
SKU:
BUS-004182
Region: 
North America
Topic: 
Strategy & General Management, Human Resources & Organizational Behavior
Length: 
3 pages
Keywords: 
non-profits, Fraud, fraud triangle, embezzlement, abouse of power, Corruption
Student Price: 
$4.00 (€3.37)
Average rating: 
0

This descriptive critical incident describes the events and resulting tragic consequences of Dr. Cecilia Chang’s extensive, alleged fraud that extended over a 30-year period while serving as a college dean at St. John’s University. In a for-profit company, employee embezzlement typically averages a loss of approximately $130,000 over an 18-month period (ACFE Fraud Survey, 2014). In a non-profit organization, however, the trust extended to employees may put the organization at even greater risk, potentially allowing higher amounts of lost dollars and a longer period of time for the fraud to be detected. Although no one will ever know the full amount actually stolen or misused by Chang, the courts awarded approximately $2 million in restitution. After her death, the case was settled for $1.2 million collected from the estate.

Learning Outcomes: 
  1. Understand basic fraud examination concepts, including the Fraud Triangle
  2. Understand fraud opportunities by explaining how power can leave an organization more susceptible to theft
  3. Explore how fraud scandals might affect non-profit organizations in particular