Corporate Embezzlement Victims Sue American Express Over Fraud Detection Policy

By , CardRatings contributor
  • Google +
  • Twitter
  • Facebook
Corporate Embezzlement Victims Sue American Express Over Fraud Detection Policy Lenders often boast about fraud prevention for their corporate credit card programs, but a new lawsuit raises questions about whether banks can or should review suspicious bill payment activities. Lawyers for audio equipment manufacturer Koss filed suit against American Express this month, asking for up to $20 million in damages in response to a Koss executive's alleged embezzlement.

The plaintiff's former vice president of finance, Sue Sachdeva, allegedly used company credit cards to pay for millions of dollars in unauthorized personal expenses. Federal investigators claim that Sachdeva avoided detection by the card issuer's fraud department because of consistent spending patterns and because she ensured that each month's bill was paid on time.

Sachdeva used both wire transfers and cashiers' checks to cover over $20 million in bills, a payment pattern American Express' own investigators documented for Koss' senior management in December. However, attorneys for Koss suggest that American Express should have alerted company officials much sooner about Sachdeva's actions. Sachdeva awaits trail after a Milwaukee grand jury indicted her on embezzlement charges.
0 Responses to "Corporate Embezzlement Victims Sue American Express Over Fraud Detection Policy"

No Comments

Leave a Comment
About Our Ratings ×

Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another.

The ratings are the expert opinion of our editors, and not influenced by any remuneration this site may receive from card issuers.

Advertisers in our database are highlighted, and advertisements include an option to apply using links on our site. CardRatings.com may be compensated by companies mentioned on the site when a user's application is accepted or approved by such companies.

How do your cards stack up?

Compare your card starting here


Featured Partner Cards