Man Exploits Payroll System to Embezzle Salary Payments by Fabricating Non-Existent Workers
A human resources manager in China has been sentenced to over 10 years in prison for embezzling 16 million yuan (US$2.2 million) by creating fake employees and fraudulently collecting salary payments on their behalf. The manager, identified only by his surname Yang, worked at a labour services company in Shanghai that handled payroll for workers sent to a tech firm.
Yang discovered that the company lacked a review process for salary payments and held sole authority over employee placements. Seizing this opportunity, he fabricated an employment record for a fake employee named “Sun” and began applying for salary payments in Sun’s name. He then redirected the money to a bank card under his control, not in his name.
Over the years, Yang continued his scheme, creating 22 non-existent employees since 2014. He claimed their severance pay and wages, which he transferred into his account, unnoticed by the labour services company. The fraud was finally uncovered in 2022 when the tech company’s finance department noticed that Sun, though receiving regular pay, had never been seen at work and had perfect attendance.
An investigation into bank transactions and attendance records revealed the full extent of Yang’s eight-year scam. He was sentenced to 10 years and two months in prison, stripped of his political rights for one year, and fined. He was ordered to return 1.1 million yuan in stolen funds, while his family was made to return another 1.2 million yuan.
The case, which has sparked widespread outrage online, highlights vulnerabilities in payroll systems and the potential for job position abuse. It also adds to a growing list of similar cases of financial fraud in China, such as the recent example of a woman who misused public funds after her divorce and an accountant who fraudulently used his child’s name to steal wages.
