How did Brian Wheeler steal money from GHAPS?
Brian Wheeler embezzled money through two companies: Infinity Electrical, LLC and Business Office System Support. He did not create or own either company. Infinity Electrical, LLC was established by an electrician who likely crossed paths with Wheeler doing legitimate work for GHAPS before 2014. The electrician eventually found work elsewhere and Wheeler began embezzling under Infinity Electrical’s name. Business Office Systems Support was owned by a man who was likely an associate of Wheeler. Wheeler created fake invoices, often containing random names of current and former GHAPS employees unbeknownst to them. The invoices indicated they had done electrical work for GHAPS at a billing rate of $20/hr.
As the head of the GHAPS Technology Department, Brian Wheeler was in charge of an $18.9 million technology bond fund approved by the taxpayers. This position enabled Wheeler to approve invoices. Approximately every two weeks for seven years, Wheeler submitted invoices from Infinity Electrical, LLC and/or Business Office System Support to the GHAPS accounting department, who in return issued checks from GHAPS. Then most, if not all of the checks, were given directly to Brian Wheeler by a GHAPS employee for him to distribute to the fictitious businesses.
In other words, Wheeler created invoices, approved invoices, and then received checks for those invoices. For seven years no one asked any questions. Nobody wondered what work was being done. Nobody wondered why Brian hand delivered checks every two weeks. Nobody asked how someone whose wages were heavily garnished could afford an RV, trip to Africa, and college tuition for his children.
Here are a few sample invoices created by Wheeler.
After reviewing these invoices, what is most shocking is how little descriptive information they actually contain. If you are a homeowner hiring someone to do work on your property, the invoice you receive is likely to contain more information. Yet, you as the person receiving the bill are likely to know exactly what work has been done. Contrast this with a school district or business. It is common for multiple people from multiple departments to be involved in interactions with people hired to complete work. The invoice (and/or contract) helps facilitate communication by containing descriptive information regarding work performed.
It seems that GHAPS was approving invoices with little to no detailed information and nobody was verifying the existence of the completed work. Because these invoices are such low quality, yet resulted in the embezzlement of over $1,000,000 dollars, it begs many questions.
What financial processes did GHAPS have in place?
Was GHAPS following their processes?
Who reviewed invoices besides the person submitting them?
GHAPS paid for financial audits each year. Did the audits review these invoices?