Question

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?

Answer 1

This is an example of Sales Skimming fraud.

Step-by-step explanation:

Let re-visit the concept of Sales Skimming before we apply to the question: Sales skimming is the theft of money received from sales even before it has been recorded by the entity.

As described in the question, Albert has wrongly taken the late fee which should be collected by his company by incorrectly record the paid day of tenants. As a result, the company's system is unable to recognized an late fee they are eligible for receiving. Instead, these amount flows into Albert's pocket.

So, the described situation is an example of Sales Skimming fraud.