An HR manager stole $2.2 million over eight years by creating 22 fake employees, funneling fraudulent paychecks into personal accounts.
Recently, a Chinese HR manager was sentenced to prison for stealing a large sum of money by creating fake employees.
This story reveals how one person exploited their position for personal gain over several years.
The HR manager, known as Yang, began their career at a technology company in Shanghai in 2014.
As the HR expert, Yang had a lot of responsibilities. This included managing employee records and overseeing salary payments.
Unfortunately, Yang found a way to misuse this power.
HR manager stole $2.2 million in paychecks over 8 years by creating 22 fake employees
Yang realized they were the only people who could see salary payments. This lack of oversight allowed Yang to create 22 fake employees.
They fabricated names, job titles, and employment records for these nonexistent workers.
By doing this, Yang could approve payments to bank accounts they controlled.
For eight years, Yang managed to run this fraudulent scheme without anyone noticing.
The total amount stolen was over 16 million yuan, which is about $2.2 million.
This money came from wages and severance pay meant for the fake employees. Yang’s actions caused significant financial loss to the company.
Staff noticed a suspicious employee and investigated further.
The scheme continued until 2022, when staff members began to suspect something was wrong.
They noticed a supposed employee named Xiao Sun who had perfect attendance.
However, no one in the company had ever seen or spoken to this person. This raised red flags and prompted an investigation.
Once the company’s finance staff raised concerns, investigators stepped in.
They discovered that Xiao Sun and the other 21 employees had never existed.
The investigation revealed Yang’s manipulation of the payroll system and the fraudulent transfers of money into their own accounts.
HR manager faced 10-year prison after their fraud
As a result of the investigation, Yang faced serious legal consequences.
The Minhang Procuratorate took action to freeze all bank accounts linked to the fraud.
Yang was ordered to return 1.1 million yuan (about $152,000), while their family contributed an additional 1.2 million yuan (around $165,000).
However, this was just a fraction of the total amount stolen.
In the end, the court sentenced Yang to ten years and two months in prison. The court also stripped Yang of political rights for one year.
Additionally, they faced a fine for embezzlement due to their actions.
Social media reactions
Social media users expressed shock and disbelief at the HR manager’s actions.
One user said: This is what Musk and his minions are doing to our federal departments – wholesale looting.
The second user added: I audit payroll, that would have not got passed me! You need 1 employee entering payroll and at least 1 auditing it. Plus our finance department reviews it as well.
The third user commented: Sadly, I know somebody who did this, ending they went to jail for 6 years….
The fourth user said: I’m surprised it took 8 years for them to find out
Another user said: That is why you need a payroll AND an HR department completely separate from each other.
Someone commented: That’s why we have doge to find bs like this