In an article by Matt Hudson from the Billings Gazette we find a “popular Billings accountant” facing federal embezzlement charges which has to cause the business community to ask “Why?”! To be clear, I do not know Michael Wombolt, but I do know a thing to two about how such a downfall can take place. I’ve been in his shoes and it’s no pretty.
Hudson’s news report states the following:
Michael Leonard Wombolt was indicted in December on eight counts of wire fraud through his dealings with Harvey Ost Oilfield Services, a Malta company. He’s accused of moving money from the client to his own business accounts and trying to cover the tracks.
Wombolt made his initial appearance in U.S. District Court in Billings on Jan. 26, the same day the case was unsealed. He pleaded not guilty and was released.
Wombolt owned A+ Accounting and Consulting in Billings and managed accounts for Harvey Ost Oilfield Services. According to court documents, he embezzled money by writing checks from the Harvey Ost Oilfield account to one of two A+ Accounting accounts.
He’s accused of doing this eight times in 2014 for a total of $98,033.
What Happened?
That’s always the question after it happens. Were their warning signs? That’s perhaps a better question. Is there a pattern to such behavior? That may be the best question and one that helps us see through the fog of the situation and focus on how it could have been prevented. Let’s explore…
First, before there was a fraud there was a NEED. Now I don’t know what “NEED” Michael Wombolt had, but make no mistake, people don’t destroy their careers if something in their life isn’t in balance. In other words, Wombolt needed something. Perhaps he had too much debt. Perhaps his lifestyle was out of control. Perhaps he was feeling some external pressure to perform? I don’t know what the NEED was but there was a NEED that Michael Wombolt felt needed to be satisfied – so much so – that he resorted to embezzlement. Sad.
But, in order to satisfy his NEED, Wombolt needed an OPPORTUNITY. Enter his client Ost Oilfield. Again the Billings Gazette reports:
To cover his tracks, federal prosecutors say that Wombolt falsified entries on Harvey Ost Oilfield’s general ledger. The transactions were made to look like “routine business expenses,” the indictment states, and that Wombolt once claimed that the money was reimbursement for personally paying the payroll taxes for Harvey Ost Oilfield Services.
The indictment includes allegations of interstate wiring, as the transactions moved through an out-of-state clearing house.
NEED combined with OPPORTUNITY creates the initial foundation for the third leg of the three-legged stool to be attached – RATIONALIZATION. If I were a betting man, I’d suggest that Michael Wombolt would say today that he considered his theft just a loan that he intended to pay back. But THEFT is never a loan and today Wombolt is facing serious charges. The Gazette completes their story with the following:
Wombolt’s business, A+ Accounting and Consulting, has shut down, and another firm took over his clients. Wombolt is required to seek employment during his release, according to court documents.
Voters chose Wombolt as the top accountant in the 2014 Billings Gazette Readers’ Choice poll.
The deadline for a plea agreement is set for 10 days before the trial, which has been scheduled for March 28.
We’ll continue to follow up. Meanwhile, on a human level, I sincerely hope that Wombolt finds peace within himself and can craft a new life that allows for introspection and an open door to future success.
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