Three former employees at First Franklin Financial are being accused of fraudulent activity, with one employee creating various fraudulent loans worth nearly $40,000 and the two other employees pocketing more than $700 in cash payments from customers.
Branch Manager Marie Roland and Regional Operations Director Harriet Healey Welch told Madison City Police that they began suspecting a manager, assistant manager and customer service representative of stealing First Franklin Financial funds back in September.
“Welch then explained her suspicion of fraudulent activity stemmed from a manager who called and advised her about a personal loan created by the manager at this location,” wrote Officer Johnson in the police report. According to reports, this loan was found to be a fake after it was discovered that it was made out to a man who was in prison at the time the loan was approved. The manager who created the loan also had a personal relationship with the man. According to the police report, at the end of September, the manager admitted to the fraudulent loan created for the man in the amount of $1,313.32. After further investigation, Welch alleges that the former manager created numerous fraudulent loans under random names for an approximate amount of $39,765.
According to reports, the other two employees were found to be accepting cash payments from customers without posting those payments to their accounts. After those customers complained over receiving missed payment notifications, management discovered fraudulent hand-written cash receipts in the office shred box from the assistant manager and customer representative.
“To date, all accounts affected by the fraudulent activity are current,” stated the report. “The First Franklin Financial took a financial loss of $720 to make current the non-posting cash receipts.”
The Georgia Bureau of Investigations (GBI) is investigating the claims. Charges have not been filed as of press time on Nov. 28. Management at the Madison branch of Franklin First Financial declined to give a comment on the matter as of press time on Tuesday, Nov. 28.