Question

Jim Smith and Bob Jones are new summer interns working for a major insurance company. During their lunch break each day, they eat at a local sandwich shop. One day, Bob’s girlfriend joins you for lunch. When the bill arrives, Bob pays and tells Jim he will submit the bill for expense reimbursement as a business expense. Bob treats his girlfriend to lunch in this manner several times during the next month. You always ask for separate checks and pay for your lunch separately.

Corporate policy states that casual lunches are not considered a business expense. Bob says this is not a casual lunch. He says that you and he always talk business and that he is recruiting his girlfriend for an intern position next year.

Is fraud being committed by Bob?

What would you do?

Answer 1

1. This is a case of clear mis-appropriation and twisting of facts by Bob ,to his own advantage and hence a fraud prima-facie.

There is the corporate policy that casual lunches are not to be considered an eligible business expense that can be reimbursed.

That too, an intern is not normally entrusted with the responsibility of recruiting another intern, that too in the future --and this not for furthering any of the business' interests.

This is a case of fraud committed clearly with malafide intention of hosting his girl friend at the expense of the company--clearly abusing certain privileges extended to the interns

2. I ,as Jim , will use all my tact to dissuade Bob from committing this error,highlighting that these kinds of reckless & unethical acts are bound to spoil his chances of good rating by his superiors,which may even result in a loss of an offer of employment in the same company.

In the event of   my well-intentioned advices going unheeded by Bob,I will be careful in keeping my reimbursements-claim honest to the core & may even think of distancing myself from being associated with Bob.