The first line of defense against employee fraud and embezzlement is to hire the most qualified and most trustworthy individuals to work in your business, especially those employees who will have access to your company’s finances. The problem is, in this day and age, that is easier said than done. There are so many laws and rules geared toward protecting potential employee from improper hiring practices that even when you perform proper due diligence with your candidates, you will be limited in what you can ask, where you can gain information, and how you can us the information you do obtain in your hiring decision. In the real world of embezzlement, the perpetrators rarely fit the stereotypical image of someone capable of concocting and carrying out fraud schemes. Rather, they are almost always someone above suspicion! Embezzlers are of any age, gender, race, religion, and income bracket. Why? Despite the appearance of honesty, you can never be sure of what is going on in someone’s personal life, and desperate people are capable of taking desperate action. To further highlight this issue, it is probable that you have no idea that a fellow employee may: Have a gambling issues, have an alcohol problem, have a substance abuse situation, be experiencing financial difficulties, have expensive medical bills, or—enjoy living life on the edge! The fraud triangle—and the top of the triangle is incentive. Incentive is the starting point of fraud. Then there comes opportunity. Too much trust, poor internal controls, lack of supervision, no financial audit by independent CPAs, and the like, all create opportunity for fraud. The basic purpose of effective internal controls is to remove the opportunity for fraud. #RandolphHarris 1 of 20

Rationalization: After a period of time, the perpetrator actually convinces themselves that they are not stealing, but rather self-correcting a perceived wrong such as a pay discrepancy of the life. The Uniform Crime Reports collect data annually from law enforcement authorities on the crime of embezzlement. However, this crime is categorized as a Part II offense, which means that arrest data are disseminated to public but data on the number of known offenses are not readily available. In 2022, state and local law enforcement authorities effected 22,176 embezzlement arrests. There were 4,180 white-collar prosecutions in 2022. Annual losses from white-collar crimes as of 2021 are anywhere from $426 billion to $1.7 trillion. The wide range here is due to the lack of prosecution. It is estimated that up to 90 percent of white-collar crimes go unreported. White-collar crimes affect over 35 percent of U.S.A. businesses. It is estimated that 75 percent of all employees steal from their employer at least once, and another half of that percentage is repeatedly stealing. Plus, over 50 percent of embezzlers are managers. There are roughly 5,000 white-collar crime-related arrests for every 100,000 people in the U.S.A. Fraud makes up 63 percent of white-collar crimes, making it the most common. The painful reality is that there exists no reliable source of data on the incidence and/or prevalence of crimes within complex organization. For one, the vast majority of these offenses never get reported—a recent national telephone survey of white-collar crime victimization found that less than 1 in 10 victimizations were reported to law enforcement or any other regulator entity. #RandolphHarris 2 of 20

It is widely reported that corporate victims of embezzlement or employee theft prefer to handle these matters in-house for fear that external involvement will bring negative publicity or unnecessary scrutiny, or even jeopardize propriety information (id est, trade secrets). When members of government (id est, law makers or law enforcers) or corporate executives engage in economic or violent crimes against the public, they can usually rely on norms of secrecy or the threat of dire organizational sanctions to keep the matter from going public. Even if the public, media, or investigators begin suspecting foul play, corporate lawyers and the legal protections that are afforded to organizational entities will usually allow them to produce a formidable smoke screen. In these professional occupational crimes (id est, crimes committed by members of a profession), perpetrators can readily hide behind the collective code of silence, structures of self-regulation, and privileged information clauses as a way of controlling the flow of damaging information. In light of these structural impediments, one must rely upon data from small-scale and narrowly focused research efforts to speak to the descriptive aspects of these criminal events. Several studies have explored the topic have explored the topic of theft by employees. Property deviance refers to the theft of hard assets (id est, money, goods, raw materials). Production deviance refers to counterproductive behaviors such as the theft of time, the abuse of sick leave, on-the-job substance use, and engaging in intentionally slow and sloppy work. #RandolphHarris 3 of 20

Of the 9,175 interviews with retail, hospital, and manufacturing employees working in forty-seven corporations located across the United States of America, we found that one-third of the interviewees admitted to some form of property deviance in the past year. A similar study involving restaurant employees found that 60 percent had engaged in at least one form of property deviance and a full 82 percent had engaged in production deviance in the preceding year. Experts note that as much as 40 percent of all shoplifting that is experienced by retailers can be traced back to acts of collusion in which one or more dishonest employees choose to assist the external thief in one’s crime. Research on corporate-level violations reveals that companies engage in a good amount of offending as well. First, there were 6,558 white-collar crime case involving 8,670 defendants tried by U.S.A. attorney in 2021. There were an additional 6,332 persons investigated and 3,224 persons tried by U.S. attorneys’ offices tht year for violating federal regulatory statue such as the Food and Drug Act or any one of the other special congressional provisions that were previously outlined. In 2022, there were 371 antitrust cases brought before the U.S.A. district courts (90 percent were pursued as civil, rather than criminal cases). There is a general consensus that these numbers represent only a fraction of the actual corporate wrongdoing. #RandolphHarris 4 of 20

Numerous scholarly studies have attempted to more accurately estimate levels of corporate misconduct. In the study of court and administrative actions taken against the seventy largest U.S.A. corporations in, we found widespread evidence of abuse. All seventy firms in the sample had at least one formal action brought against them. The average number of violations per company was fourteen. A full 60 percent of the firms had been convicted in criminal court. All total, these seventy firms accounted for 980 violations of the law. Similar offending trends were found among the fifty largest corporations in Canada. Nearly two-thirds of Fortune 500 companies had come under fire from one or more of twenty-four federal regulatory agencies for violating corporate law during a 1-year time period. Abuses of state authority also appear to be widespread. There are 1,134 elected or appointed U.S.A. officials facing some form of criminal indictment. These offenses are capable of permeating every level of government. There have been more than 17 governors or former governors indicted between 1970 and 2009. There have been 487 instances of alleged and actual misconduct by legislators in the United States of America’s Congress from 1789 to the present. At least 13 mayors arrested on child sex crimes since 2021. And a considerable assortment of country officials have been indicted. #RandolphHarris 5 of 20

Crimes by government agencies are yet another type of offense that must e assessed through targeted cases. There are several noteworthy examples. An estimated 63,000 developmentally disabled Americans were sterilized under eugenics statues that were widely imposed across the South for the better part of the early 1900s. Also U.S.A. Public Health Service withheld treatment from more than 400 impoverished African Americans in the notorious “Tuskegee Syphilis Experiment.” The excessive use of force by police offers represents one of the most prevalent and “newsworthy” forms of state crime. Voluntary data provided by 100+ police agencies reveals 25,067 incidents of use of force occurring in 2022 and 1,200 people were killed by police. Each year, fewer than 3 percent of killings by police result in officers being charged with a crime. A broad-based survey of citizens made it known that as many as 1 percent of police-public contacts that occurred in 2022 involved some form of force or threatened force on the part of the officer. Research suggests that as many as 40 percent of all use-of-force incidents involve improper force tactics on the part of the officer(s). Taken on face value, these findings suggest that somewhere in the neighbourhood of 180,000 abuses of police force occur each year in this country. Crimes by persons of professional status are yet another form of crime for which we have little incidence and prevalence data. #RandolphHarris 6 of 20

Members of the health care community engage in a broad range of criminal behaviors. Estimates suggest that as many as 50 percent of all doctors, nurses, and pharmacists will engage in illegal prescription drug use at some point during their careers—5 percent to 10 percent will come to abuse these drugs. AN untold number of doctors are said to defraud Medicare and Medicaid through overbilling or retainer scams, engage in prescription violations, conduct illegal abortions, and take part in self-referral or fee-splitting schemes (id est, providing kickbacks to other doctors for unnecessary or illegal referrals). It is estimated that as many as 15 percent of all elective surgeries are unnecessary; and documented is a considerable ineptitude and malpractice among doctors. Other professional groups have also evidenced considerable levels of criminal and unethical behavior. It is estimated that somewhere between 5 percent and 10 percent of all practicing psychotherapist have had sexual relationships with a patient. Additionally, 27 percent of university researchers surveyed admitted to having personal knowledge of research fraud or plagiarism on the part of one or more colleagues. Also, considerable numbers of lawyers have licensure complaints and criminal action filed against them. The monetary and social costs that go along with crimes within complex organizations are staggering. On average, there are over $50 billion in losses due to employee theft in a single year nationwide. Retail loss prevention professionals estimated employee theft to cost $18 billion a year. #RandolphHarris 7 of 20

The Judiciary Subcommittee on Antitrust and Monopoly estimated that faulty goods, monopolistic practices, and other violations annually costs consumers between $200 and $275 billion. A Department of Justice estimate put the total annual loss of taxpayers from reported and unreported violations of federal regulations by corporations at $20 to $30 billion, and the Internal Revenue Service estimated that about $2.2 billion goes unreported each year in corporate tax returns. Given the fact that these estimates for each would be significantly larger. Even more disturbing figures emerge when one shifts the focus to the physical harms perpetrated by corporate entities. For example, the Environmental Protection Agency (EPA) estimates that commercial entities are responsible for 90 percent of the more than 292 tons of toxic waste that are released into the environment each year. These toxins produce untold levels of harm to the air, water, and land of this country. Routine exposure to these poisons can produce cancer or other fatal diseases. The heavily polluted air of Los Angeles produces 220 cancer deaths each year and 240,000 persons will die from asbestos-related cancer over the next 30 years. Also, there are other things to consider when it comes to climate change. We have pumped so much groundwater that we have changed the Earth’s spin. #RandolphHarris 8 of 20

By pumping water out of the ground and moving it elsewhere, humans have shifted such a large mass of water that the Earth tilted nearly 80 centimeter (31.5 inches) east between 1993 and 2010 alone. Based on climate models, humans pumped 2,150 gigatons of groundwater, equivalent to more than 6 millimeters (0.24 inches) of sea level rise, from 1993 to 2010. Therefore, it is important to slow the amount of water we are sucking out of the Earth, as this could add to the planet heating up. You will notice areas with oceans tend to be cooler and have more vegetation, but places like the desert are hot and have no vegetation. Anyone reading this page has an amazing skill called literacy. It comes as a shock sometimes to remember that all of us had ancestors who were illiterate. Not stupid nor ignorant, but invincibly illiterate. Not only illiterate, they were also “innumerate,” meaning they could not do this simplest arithmetic. Those few who could were deemed downright dangerous. A marvelous warning attributed to Augustine holds that Christians should stay away from people who could add or subtract. It was obvious they had “made a covenant with the Devil.” It was not until a thousand years later that we find “reckoning masters” teaching pupils bound for commercial careers. What this underscores is that many of the simplest skills taken for granted in business today are the products of centuries and millennia of cumulative cultural development. #RandolphHarris 9 of 20

Knowledge from China, from India, from the Arabs, from Phoenician traders as well as from the West, is an unrecognized part of the heritage relied on today by business executive all over the World. Successive generations have learned these skills, adapted them, transmitted them, and then slowly built on the results. All economic systems sit upon a “knowledge base.” All business enterprises depend on the preexistence of this socially constructed resource. Unlike capital, labor, and land, it is usually neglected by economists and business executives when calculating the inputs needed from production. Yet this resource is now the most important of all. Today we are living through one of those exclamation points in history when entire structure of human knowledge is once again trembling with change as old barriers fall. We are not just accumulating more facts. Just as we are now restructuring companies and whole economies, we are totally recognizing the production and distribution of knowledge and the symbols used to communicate it. What does this mean? It means that we are creating new networks of knowledge…linking concepts to one another in startling ways…building up amazing hierarchies of inference…spawning new theories, hypotheses and images based on novel assumptions, new languages, codes and logics. Businesses, governments and individuals are collecting and storing more sheer data than any previous generation in history. #RandolphHarris 10 of 20

However, more important, we are interrelating data in more ways, giving them context and thus forming them into information; and we are assembling chunks of information into larger and larger models and architectures of knowledge. Not all this new knowledge is “correct,” factual, or even explicit. Much knowledge, as the term is used here, is unspoken, consisting of assumptions piled atop assumptions, of fragmentary models, of unnoticed analogies, and it includes not simply logical and seemingly unemotional information or data, but values, the products of passion and emotion, not to mention imagination and intuition. It is today’s gigantic upheaval in the knowledge base of society—not computer hype or mere financial manipulation—that explains the rise of a super-symbolic, Third Wave economy. Contrary to conventional wisdom, today’s Western trade and economic relationship does provide for a certain kind of global equilibrium. It may be far from optimal, but it is not as bad as how you feel when you read numerous publications in the Western media or listen to politicians’ speeches. Here is the equilibrium’s outline. If American households’ savings increase, this translates into a higher investment rate (ratio of domestic investment to the GDP), rapid growth of production, and increasing exports to the East. Earning a lot of foreign currency, America boosts its foreign reserves (they expand further as American monetary authorities buy foreign reserves). The reserves are used to purchase securities, which fight with budget deficits and ease the pain of deep public spending cuts. #RandolphHarris 11 of 20

We have to look at the global economy as an entity, with national economies as its integral parts. For decades, America’s enormous current account deficits were the focus of attention of economists, policy makers, and the media. All though those decades, critics, and skeptic did not stop saying that they were unsustainable. However, in reality they have proved to be quite sustainable: The U.S.A. economy remains safe as long as the inflow of capital continues and the capital and financial account remains in a comfortable black. Running large trade and current account deficits, the United States of America played the role of the major market creator for the World, supporting global growth, including growth in countries that were its major creditors. It was and is kind of a deal: market for money. Having become the U.S.A. government’s major, Beijing is and will be committed to playing its part because economic stability of America is indispensable for China itself: The United States of America is one of its most important trading partners. However, there has been a remarkable transformation of the U.S.A. international investment position occurring over the last 40 years. U.S.A. net foreign assets were larger than combined net foreign assets of all other creditors. By 1990, foreign-owned U.S.A. securities and real assets were larger than U.S.A. owned foreign securities and assets. This change occurred without the U.S.A. Treasury borrowing in foreign purchases of U.S.A. securities. #RandolphHarris 12 of 20

Inferences from the currency composition of portfolio changes of those who acquired U.S.A. dollar securities suggest that foreign savers took the initiative on cross-border investment inflows. The U.S.A. could not have developed a larger capital account surplus after 1980 unless a similar increase in the U.S.A. current account deficit increase was the surge in U.S.A. stocks and other asset prices, resulting in a U.S.A. household wealth surge and consumption boom. The foreign saving inflow displaced domestic saving. In addition, an increase in the price of the U.S.A. dollar led to expenditure-switching from U.S.A. goods. When investor demand for U.S.A. dollar securities declined, the U.S.A. dollar price fell in 1992, 2002, and 2020 and the price of the U.S.A. dollar securities declined. Therefore, the U.S.A. has to stop living for today and pay off our debts, so we can once again become a creditor nation. We have to reduce the amount of goods and services that we import, and increase the amount of commodities we export. The good thing is that in the wake of this crisis, American households actually have begun to save more. However, Americans will have to learn to reduce their consumption to keep their savings high. This will encourage the central banks to raise policy interest rates to contain soaring inflation and prevent overheating. Of course, it will take time to rebalance the American economy. The private sector must continue to get stronger. #RandolphHarris 13 of 20

Generally speaking, the original so-called protective functions of the family as an institution are in modern times discharged by legal and political agencies. Beyond basic physical protection against human and nonhuman enemies, such institutions as police departments, child welfare agencies, marriage license bureaus, legal aid bureaus, inspection and regulation bureaus, traveler’s aid for desertees and the runaway child, and courts of every kind, are principally devoted to guarding the rights and safety of citizens. In the past, these functions have been construed ad largely negative or corrective. That is, when someone encroached upon another, or deviated from given rules or standards, it became the duty of one of these protective agencies to set matters right. In more recent times these bodies have tended to take a more affirmative approach. There are no clearly marked stages in the transition, and new functions have often been simply superimposed on old ones. This steady transformation of family legal agencies, though quite in accord with the ancient principle of equality before the law, nonetheless involves a conspicuous paradox if not a contradiction. For, all institutions, the family is traditionally the most addicted to conserving inequality, among, if not within, families. Many critics of the family have seen it primarily as a means for transmitted advantages from one generation to the next. The rewriting of family law, exempli gratia, on inheritance, has repeatedly run across the grain of this profound impulse of people to favor their own kin. #RandolphHarris 14 of 20

Nepotism is a term of discredit in the United States of America. Legal responsibility for misdoing is uniformly fastened on the individual, but upon one’s family. The near-legend of the Hatfields and the McCoys gain its popular interest largely from the extraordinary uniqueness of interfamily feuds in this society. Surnames, instead of being treated as facts of nature, are continually being changed by immigrants, members of minority groups, and people who, like entertainers, appear before the public. Antagonism to vestiges of primogeniture is as vehement among younger sons and daughter today as it was in the breast of Jefferson; heir must share alike, estates be broken up, and dynasties be avoided. Sons of great men find a thousand knives sharpened to whittle them down to size. Evidence like this could be multiplied to exhibit unmistakably the clash between our majority sentiment of individualism and philosophies of feudalistic or neofeudalistic familism. In spite of some opposition by a minority, purist of that idealized state of affairs, in which the person’s standing in the community is entirely a product of one’s own character and not all the result of one’s family connections, appears to be waxing, not waning. It has at least the vitality it had in Jefferson’s day and probably more. This ideal, however, would be absurd prima facie if it failed to recognize the overwhelming influence of the family in formation of the individual character. #RandolphHarris 15 of 20

Perhaps this fact was unrecognized in Jefferson’s day; perhaps he and his allies though that the leveling off of the extrinsic advantages and disadvantages of inherited property was the most important step toward equality. Anyhow, it is recognized today by students of the family that there are other advantages and disadvantages, just as important as those of inherited wealth and poverty, which must be dealt with, before every America child can truly asset that one enjoys equality of opportunity. The Lord said, “If ye abide in Me [id est, in the glory], and My words abide in you, ask whatsoever ye will…” reports John 15.7. Christ abides in us by His Spirit and through His words, but He Himself, as a Person, is in Heaven, and it is only as we abide in Him there that His Spirit and His life, through His Word, can be manifested in us here. “Abiding” means an attitude of trust and dependence on Him in Heaven; but if one’s attitude is changed into trust and dependence upon a Christ within, it is really a resting upon an inward experience and a turning from the Christ in Heaven. This actually blocks the avenue for the inflow of His life, and disassociates the believer from cooperation with Him by the Spirit. Any manifestation, therefore, of a “presence” within cannot be a true “manifestation” from God if it uncenters the believer from one’s right attitude toward the Christ in Heaven. There is a true knowledge of the presence of God, but it is in the spirit, when joined to Him who is within the veil—a knowledge of spiritual union and fellowship with Him which lifts the believer, so to speak, out of oneself to abide with Christ in God. #RandolphHarris 16 of 20

The counterfeit “presence” of God is nearly always manifested in the guise of love, to which the believer open oneself without hesitation. One may find that it fills and satiates one’s innermost being; but being deceived, one does not know that one has opened oneself to the activity of psychological offenders. The concept of finitude is the center of being which draws us to God. Man is terrified of nonbeing because his being does to secure him against it. His ability to question being, his separation from it, reveal that he shares in nonbeing. The undialectical concept of being is ouk on, the nothingness referred to in the phrase creatio ex nihilo. It has no relation whatsoever to being; it is pure negation, and hence undialectical. Me on, on the other hand, is the dialectical concept of nonbeing. It is related to being in the sense of resistance to being, or perversion of being, or menace to being. It is dialectical. The problem of finitude, then, is the dialectical problem of nonbeing. For being, limited by nonbeing, is finitude. Nonbeing appears as the “not yet” of being and as the “no more” of being. Being is the power of being! Power, however, presupposes, even in the metaphorical use of the word, something over which it proves its power. That which is conquered by the power of being is nonbeing. Being, therefore, is the power of being which resists nonbeing. Nonbeing is not a stranger to being. Metaphorically, it is that quality of being by which everything that participates in being is negated. Nonbeing is the negation of being within being itself. #RandolphHarris 17 of 20

Human experience of the ontological structure and elements shows that to be something is to be infinite. Yet the limitations of nonbeing are visible only against the backdrop of a potential infinity. For example, one realizes the finiteness of death only by imagining the possibility of something beyond death. Finitude is seen as finitude only if finite being transcends itself, steps out of itself in the direction of infinity. Infinity is a demand, not a thing. Infinite negates the limitations of finitude; it negates nonbeing. However, infinity is not being-itself. One must understand that infinite in the sense of infinite self-transcendence, while being-itself manifests itself to finite being in the infinite drive of the finite beyond itself. Infinity is a manifestation of being-itself, but the two can never be identified, for being-itself precede nonbeing and its negation by infinity. The awareness of finitude produces an ontological anxiety, for finitude contains the threat of nonbeing. Fear is psychological and stems from a menacing object, but anxiety is the self-awareness of the finite self as finite. Anxiety is all-pervasive as nonbeing. Since anxiety is the existential awareness of nonbeing, it is perfectly natural to man. Finitude and anxiety appear also in the ontological element. A polarity supposes a balance, each pole limiting and supporting the other. However, because of its finitude a polarity becomes tension, the tendency of elements within a unity to draw away from one another, to disintegrate. #RandolphHarris 18 of 20

Thus, the polarity of individualization and participation becomes the tension of loneliness and collectivization. Dynamics and form become chaos and formalism. Freedom and destiny become arbitrariness and necessity. These tensions are threat to finite man, for if he loses one side of the polarity, he loses the other side. Once the polarity disintegrates, he is destroyed as a self. It must be insisted upon, however, that these finite tensions are only possibilities, tendencies, threats, if you will. However, they do not necessarily lead to actual disintegration, just as every threat is not inevitably carried out. Freedom is the pivot, for it is only through freedom that the threat is carried out, that the finite tensions snap, that potential disruption is actualized. Freedom ushers in the basic distinction between essential being, threatened but integral, and existential being, real but distorted. “Essence” is ambiguous in that it denotes a fact and connotes a value. It signifies the nature of being, the universal, the logical ideal. However, essence also pronounces judgment, for it is the undistorted state from which the being has fallen. Essence makes the being what it is and judges it. “Existence” exhibits the same ambiguity of meaning, for it signifies not only actuality, standing out from potentiality, but also imperfection, the failure to measure up to essence. Whatever exists, that is “stands out” of mere potentiality, is more than it is in the state of mere potentiality and less than it could be in the power of its essential nature. #RandolphHarris 19 of 20

Christian theology considers existence a positive fulfillment of creation, of essence. It also points out the split between essential created goodness and its existential distortion. The theologian cannot avoid this problem. The distinction between essence and existence, which religiously speaking is the distinction between the created and the actual World, is the backbone of the whole body of theological thought. If man is that being who asks the question of being, he had and has not the being for which he asks. He is separated from it while belonging to it. Certainly we belong to being—its power is in us—otherwise we would not be. However, we are also separated from it; we do not possess it fully. Our power of being is limited. We are a mixture of being and nonbeing. This is precisely what is meant when we say that we are finite. Hope in God, His goodness, and His power refreshed us with courage during difficult challenges. Hope has the power to fill our lives with happiness. Its absence—when this desire of our heart is delayed—can make the heart sick. Hope is a gift of the Spirit. It is a hope that through the Atonement of Jesus Christ and the power of His Resurrection, we shall be raised unto life eternal and this because of our faith in the Savior. This kind of hope is both a principle of promise as well as a commandment, and, as with all commandment, we have the responsibility to make it an active part of our lives and overcome the temptation to lose hope. Hope in our Heavenly Father’s merciful plan of happiness leads to peace, mercy, rejoicing and gladness. #RandolphHarris 20 of 20

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