Journal of Accountancy Podcast Lessons in internal control lapses from major fraud cases
Feb 11, 2026
Tammy Thomas, forensic accounting director at CBiz and co-author of the FVS Eye on Fraud report, specializes in forensic consulting and embezzlement investigations. She examines how weak segregation of duties and small control gaps let fraud persist. She describes cases where role consolidation and deadline pressure eroded controls. Practical prevention steps and why internal control is a living process are highlighted.
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Controls Are A Living Process
- Internal control is a living, interlocking process that supports policies and procedures.
- Tammy Thomas frames controls as ongoing activities that prevent, detect, and corroborate actions.
State Department Check Fraud Example
- LaVita Ferrer at the State Department created, approved, and signed checks and embezzled over $650,000.
- Tammy Thomas says segregation of duties and a second approval could have prevented it.
Ten‑Year Embezzlement At Nonprofit
- Joelle Faust ran payroll, reimbursements, and books, embezzling almost $700,000 over 10 years at Promise Community Homes.
- Tammy Thomas describes how role consolidation, doctored receipts, and blocked board access enabled the long scheme.