Macy's tightens financial controls after employee covered up what became a $151 million mistake
Macy’s is tightening financial accounting measures after completing a probe of a rogue employee who hid $151 million in delivery expenses over a span of nearly three years
NEW YORK (AP) — Macy's said Wednesday that it has tightened internal financial accounting measures after completing a probe of a rogue employee who hid $151 million in delivery expenses over a span of nearly three years.
A probe into the coverup forced Macy’s to postpone the release of its full third-quarter earnings report late last month.
The intention of the employee was to cover up the mistake and not to steal the money, Chairman and CEO Tony Spring said on a call following the earnings report.
The employee told investigators that an error was initially made in accounting for small parcel delivery expenses, and then the person intentionally made errors to hide the mistake, according to source close to the probe but wanted to remain anonymous because of the private nature of the information.
