October 19, 2018

Fraud Friday — Dental Office Manager Indicted for Embezzling Employer of $338,000

By Bob Coleman
Editor, Fraud Friday

It started with a letter from the IRS accusing Dr. Mehmet Kahvecci of underreporting his dental practice income in 2013 by $100,000.

He filed a tax return showing gross income of $1,513,665 but the IRS said gross receipts were $1,610,298.

Stunned, he checked his bank statements and confirmed his numbers were correct. His cash deposits matched his gross receipts for that year.

He employed an office manager to take care of the books. She was responsible for tracking client invoices and making the practice’s bank deposits.

He dug deeper.

The Feds say between 2009 and 2014 his office manager stole 276 checks from insurance companies payable to his business. The checks were payable to Faneuil Hall Dental Associates or Mehmet Kahvecci DMD. The checks bore the handwritten words, “Pay to the Order of Julia Vayslgus. She signed her name and then simply deposited the checks into her personal bank account.

Last week, Julia was charged with eight counts of bank fraud, one count of identity theft and three counts filing false tax returns for failing to report the embezzled funds.