Examples of Fraud Cases

This page includes examples of real frauds that were identified at UCSF or other UC Campus.

Those who commit or condone fraud against the University will be held accountable and the consequences are real. These consequences may include financial losses, termination of employment, and reporting to legal and regulatory authorities.  Fraud can also damage employee morale and the University’s reputation.

Person writing in a Notebook
Altered Travel Receipts

What happened – An employee forged and altered travel and entertainment receipts and steered University business to the employee's outside business, amounting to a loss of more than $200,000, much of which was charged to federal grants. 

Break-down in controls – This fraud was sophisticated, which made detection more difficult.  However, if the individuals approving the employee’s travel had greater knowledge about the employee’s work, they may have been able to detect the fraud sooner.

Consequences – The employee resigned before a termination could take effect.  This incident damaged the University’s relationship with its federal partners.  The University is working with the federal agencies regarding repayment and has referred this matter to law enforcement. 

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Pay for Unworked Overtime

What happened – An employee claimed and received pay for hundreds of hours of overtime for hours that were not worked.

Break-down in controls – Management was not appropriately monitoring overtime usage to ensure there was a legitimate need for the time claimed.

Consequences – After an investigation, the employee was issued a notice of intent to terminate, but resigned prior to the termination.  The University is considering legal action against the employee.  The department where this occurred has put additional controls in place to prevent recurrence.

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Personal Misuse of P-Card

What happened – After an employee separated, the University discovered that a p-card was used to pay for expenses associated with remodeling the employee’s home.

Break-down in controls – The employee used a subordinate’s p-card to pay for the expenses and then served as the approver.  There was no effective additional oversight.

Consequences – The department adopted additional controls.  The University referred this matter to law enforcement.

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Paperwork for income
Tuition Payment Diversion

What happened – An employee responsible for creating invoices was able to edit the instructions on the invoice from remitting payment to UC Regents to her name. The employee opened the cash receipts received through the mail by herself and was able to deposit the tuition checks made out to her into her personal bank account.

Break-down in controls – This fraud was sophisticated, which made detection more difficult.  There was inadequate segregation of duties. The employee received tuition payments from students and was also responsible for recording the payments. There was no additional management oversight.

Consequences – After an investigation, the employee was terminated. The department where this occurred has put additional controls in place to prevent recurrence.

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