Checklist for What to Do When Suspecting, Recovering from Embezzlement or Fraud
It’s a situation that no league wants to go through, however embezzlement and fraud is all too real of a problem for any organization or business, including local Little League programs. If your league is the victim of embezzlement or fraud, or there is suspicion of fiscal improprieties, here is Little League’s suggested course of action that can assist your league in notifying and aiding law enforcement; and help to sustain league activities during your recovery efforts. First and foremost, be sure to enroll in the crime insurance policy through AIG, available to all chartered Little League programs, to protect you should this situation arise.
What to do when an issue arises:
- Determine the date of loss; or document when the loss was discovered.
- File a police report to document the loss and collect any other applicable data that may be requested by police and/or an insurance adjuster.
- If enrolled in the Crime Insurance policy through AIG Insurance, submit an insurance claim and all claim information to the Risk Management Department at Little League International (Brent Stahlnecker, Director of Risk Management; 570-326-1921, ext. 2258) so a claim can be established with the insurance carrier.
- Details should include the following:
- Date of loss/discovery
- Type of loss – money, property, etc.
- Copies of receipts or transactions documenting the loss
- An audit report if involving an internal embezzlement
- Copy of police report and/or contact info for police department/investigating officer
- Other pertinent information for the claim
- Proof of loss must be provided to Little League International as soon as possible after discovery, not to exceed policy requirements for timely filing.
- If the loss involves an internal embezzlement, the league will need to conduct an audit.
- Determine a member of your Board of Directors to be the point of contact for the insurance adjuster and work with them to provide any requested information in a timely manner to assist in the claim process
- Be aware of the policy deductibles when filing a claim.
- If a claim is considered payable, all payments will come from the insurance carrier.
- Be prepared to handle any media inquiries and address any issues.
For more information and resources on how to ensure your league’s financial safety, visit LittleLeague.org/FinancialSafety.