Why would I be reviewing a case of fraud that happened in Denmark with links to South Africa? There are at least three reasons why working the System one Kroner at a time is crucial.
The first reason is to point out that the opportunity for fraudulent behavior to occur is worldwide, and no organization, whether in Copenhagen or Cleveland is immune from it.
The second reason is that fraud need not be “flashy.” We often believe (erroneously) that scams or cases of fraud are immediately detected due to a large flurry of unethical behavior, be it a massive computer breach, or a discovery of a major financial transaction, or hundreds of victims coming forward in a class action or grievance.
The third reason deals with the concept of opportunity. What are the risks of having a long-term employee, from the lowest clerk to the CEO, overly familiar with a financial system of any kind where there are no checks and balances?
Where in the world is Britta Nielsen?
Britta Nielsen, 64 years of age, and a 40-year civil servant with the Danish National Board of Health and Welfare, hardly fits our image of an international thief. I would submit that in the world of Danish bureaucracy, Nielsen was pretty much a fixture. I can well imagine Britta sitting behind her desk, day after day, very much like a (forgive me) office chair or potted Fichus.
However, Britta had a secret. She is suspected of stealing money intended for the victims of homelessness and the disabled; about $17 million, to be exact. In mid-October 2018, a key minister for social affairs held a red-faced news conference where she stated that her trusted employee committed fraud over a nearly 17-year period.
Nielsen was apparently in no hurry. An investigation by the Ministry for Children and Social Affairs found close to 275 money transfers between welfare fund and Nielsen’s personal bank accounts. While no one in cyber-security knows quite how she stole the money, what is known is that she had “privileged access” to the Ministry for Children and Social Affairs computer system. As a 40-year employee, she undoubtedly helped them set-up and upgrade the system.
With all of the red Danish faces, the minister has sworn to determine how it was possible for Britta Nielsen to get away with it for so long. In fact, it was only in 2017 when one agency employee noted one unusual transaction.
Ms. Nielsen has been described as a ‘super user.’ It doesn’t necessarily mean she was considered a super person, but why she got away with it with nary a raised eyebrow.
Leaving on a jet plane
As the agency was realizing what was happening, Britta fled the country to South Africa. Over the years her family acquired several properties in South Africa and it is not difficult to imagine how she accumulated the properties.
She had help. Maybe that was her next mistake. As Britta stayed at her desk and fiddled with the agency’s software, she was able to funnel money to a few people who laundered the cash into properties.
The police have not identified the culprits, be they family members or friends however, the police did arrest one suspect at the Johannesburg airport as he was trying to flee the country.
Said the chief inspector of the Danish financial crime police unit:
“The arrest in South Africa is the result of an investigation that is making progress via a strong international co-operation. Our primary focus continues to be arresting the 64-year-old chief suspect, but in terms of the overall investigation of the case, the arrest of the man at the airport is an important step.”
The police did share that the man they arrested might have been some kind of agent who spent the stolen funds on the properties. He is facing extradition from South Africa to Denmark. Presumably, it will be only a matter of time before the 64-year old bureaucrat is located.
She got greedy
The fraud collapsed in on itself for no other reason other than the greed of the parties involved. They were devoid of ethical behavior. Clearly, as someone who worked in a department that indirectly saves the lives of hundreds of thousands of people through its programs, Ms. Nielsen’s need for money and its presumed power, placed her wellbeing far above those of the poor.
She could do this because she rationalized that the taxpayers of Denmark would keep funding the giant coffers of the agency. We don’t know if she secretly resented helping Denmark’s new immigrants or if she disliked Denmark’s distribution of wealth or any one of a hundred rationalizations. What we do know, quite clearly, is that there was virtually no oversite. The assets were her playground.
As someone who speaks and consults on business ethics around the world, I get quite wary when I observe a mid-level employee having power way beyond their title or jurisdiction. This is quite common among long-term employees in office management, IT or finance. While I understand that most people behave ethically, to overlook the risks of unfettered opportunities at best when working the system one kroner at a time is risky.
