Fumbled Finances:

Stop Expense Fraud

Before it Blitzes Your Bottom Line

Picture this: You’re running a successful business. Sales are steady, bills are paid, and your team feels like family. Life is good. Then one day, you glance at the financials and realize something feels... off. The expenses seem higher than usual. You dig a little deeper. And deeper. And suddenly, you find yourself staring down a massive case of fraud that’s been happening right under your nose—maybe for years.

Sounds like something out of a corporate crime documentary? Unfortunately, for the Jacksonville Jaguars, it was all too real.

In 2023, news broke that one of the Jaguars’ own employees had allegedly pulled off a brazen $22 million expense fraud scheme, funneling millions from the team into his own pockets through unauthorized purchases and fake transactions. Luxury cars. High-end hotels. Fancy restaurants. And the worst part? He wasn’t some shadowy figure lurking in the background—he was a trusted part of their organization.

Now, before you brush this off as “something that only happens to big companies,” let me stop you right there. Expense fraud doesn’t care about your revenue. It doesn’t care how many employees you have or how well you think you know your team. Small and mid-sized businesses are just as vulnerable—sometimes even more so—because they often lack the formal controls and oversight that bigger companies have in place.

That’s exactly why we’re here.

In this post, we’re going to dig into the Jacksonville Jaguars case to see how something this massive could happen to such a high-profile organization and what it can teach us about protecting our own businesses. Along the way, we’ll break down the most common expense fraud schemes, walk through ways to build stronger policies, and give you actionable steps to keep your company from falling victim to the same costly mistakes.

Because here’s the truth: It’s not a matter of if someone might try to take advantage of your expense process—it’s a matter of when.

And when that time comes, you won't want to fumble it in the endzone!

The Jacksonville Jaguars: A Cautionary Tale

When you picture expense fraud, you probably imagine some shadowy figure lurking in a dark corner office, hacking into accounts and wiring money offshore. What you probably don’t picture is a trusted employee quietly siphoning off $22 million from right under your nose while the entire organization remains none the wiser.

But that’s exactly what happened to the Jacksonville Jaguars.

The Man Behind the Mask

Meet Amit Patel. Patel wasn’t the owner, the CFO, or the guy signing the players’ million-dollar contracts. He was a mid-level employee working in the Jaguars’ financial department, primarily responsible for handling the team's virtual credit card (VCC) program.

His job? Managing everyday operational expenses. He joined the Jacksonville Jaguars in 2018, serving in the financial planning and analysis department. His responsibilities included overseeing budgets and administering the team's virtual credit card (VCC) program. Think hotel bookings, catering, travel arrangements, and all the regular spending that comes with running an NFL franchise. In other words, Patel was in the perfect position to manage a lot of money without raising a lot of eyebrows.

And over time, that trust became his most dangerous weapon.

The Embezzlement Scheme

Patel's intimate knowledge of the VCC system became the foundation of his elaborate scheme. Beginning in September 2019, Patel exploited his administrative access to the VCC program to conduct unauthorized transactions. Over approximately three and a half years, he siphoned off over $22 million from the Jaguars' coffers.

His methods were multifaceted:

• Unauthorized Transactions: Patel made hundreds of purchases with no legitimate business purpose, charging them to the team's VCCs. ​
• Falsified Records: To conceal his activities, he created and emailed fraudulent accounting records to the Jaguars' representatives, ensuring that the total dollar amount of VCC expenditures matched the balances paid by the team. ​
• Personal Indulgences: The embezzled funds financed a lavish lifestyle, including:​
• Gambling: Over $21 million was funneled into online gambling platforms like FanDuel and DraftKings.
• Luxury Purchases: He acquired a condominium in Ponte Vedra Beach, Florida, a Tesla Model 3, a Nissan pickup truck, and a $95,000 Patek Philippe watch. ​
• Extravagant Experiences: Patel chartered private jets, stayed in luxury hotels, and enjoyed spa treatments.

The Blind Spot

For years, Patel's deception went undetected, a testament to the vulnerabilities within the organization's financial oversight:​

• Lack of Oversight: Patel's role granted him unchecked control over the VCC program, with minimal supervision. ​
• Inadequate Segregation of Duties: He managed both the spending and reconciliation of expenses, eliminating internal checks and balances.
• Complacency: His reputation as a trustworthy employee led to an absence of scrutiny over his financial activities.​

The Unraveling

The facade began to crumble in early 2023. The Jaguars initiated a comprehensive internal review, which unveiled the staggering extent of Patel's fraudulent activities. Confronted with irrefutable evidence, Patel was terminated in February 2023. One month later, Patel admitted to a gambling addiction and reported that the bulk of the money embezzled went to cover his gambling losses.

Legal proceedings ensued swiftly. In December 2023, Patel pleaded guilty to wire fraud and engaging in illegal monetary transactions. By March 2024, he was sentenced to six and a half years in federal prison and ordered to pay full restitution to the Jaguars.

The Aftermath

The repercussions of Patel's actions were profound:​

• Financial Loss: The Jaguars suffered a loss exceeding $22 million, impacting their financial stability.​
• Reputational Damage: The case attracted national attention, casting a shadow over the organization's internal controls.​
• Legal Ramifications: Beyond the criminal case, the Jaguars filed a civil lawsuit against Patel, seeking more than $66 million in damages, alleging fraudulent misrepresentation, breach of fiduciary duty, and civil theft.

Patel's story serves as a stark reminder of the potential consequences of inadequate financial oversight. It underscores the necessity for organizations, regardless of size, to implement robust internal controls, ensure proper segregation of duties, and maintain vigilant oversight to prevent similar fraudulent activities.

Why This Matters to Your Business

Here’s the part where small businesses tend to tune out, thinking: “Well, that’s the NFL. We don’t deal in millions.”

Wrong.

Expense fraud scales to fit the environment. Maybe for the Jaguars, it was $22 million. For your business, it could be $22,000—or even just $2,200. But regardless of the dollar amount, the playbook is often the same:

• Trust a key employee.
• Give them control over expenses without enough oversight.
• Let complacency settle in.

Then, one day, someone figures out exactly how to take advantage of it.

Because the truth is, if a massive NFL franchise with layers of staff, accountants, and technology can fall victim to something this bold, what’s stopping it from happening in your business?

And now that you know how easily it can happen, let's take a look at the expense fraud schemes that might be quietly lurking in your own operations...

Expense Fraud 101: The Schemes Lurking in Your Business

Expense fraud isn’t always as flashy as $22 million in stolen funds and luxury hotel stays. More often, it’s subtle. It’s small. And it slips under the radar month after month, chipping away at your bottom line until one day you realize you're funding someone's side hustle—or their latest shopping spree.

And just like the Jacksonville Jaguars case, it typically thrives on two things: trust and lack of oversight. So while you may think you've got a solid handle on your expense reports, it's worth understanding exactly how these schemes operate, what they look like, and how easily they can take hold of even the most well-meaning businesses.

Let’s walk through some of the most common forms of expense fraud lurking in businesses of all sizes. Spoiler alert: You might recognize a few.

Falsified Receipts

One of the oldest tricks in the book. Employees submit fake or altered receipts to get reimbursed for expenses that never happened. Sometimes it’s as simple as editing the date and amount on a legitimate receipt. Other times, it's a complete fabrication printed off a sketchy website offering "customizable templates."

Why it works: Because when there’s no consistent verification process, those little pieces of paper (or PDFs) are often taken at face value.

Personal Expenses Masquerading as Business Expenses

Maybe it’s dinner out with friends that gets labeled as a client meeting. Or that weekend getaway conveniently becomes a "conference." It could even be major purchases—like home office furniture that’s really just new living room décor.

It’s easy to blur the lines between business and personal spending when no one is watching closely, and people are creative.

Mileage Padding

Gas is expensive, so why not bump up that mileage log just a bit? A few extra miles here and there on reimbursement forms can add up quickly. Whether it's rounding up, adding extra trips, or completely fabricating travel, mileage fraud is one of the most common small-dollar scams that persist over time.

And while $20 here and $50 there may seem harmless, it can balloon into thousands over the course of a year, especially with repeat offenders.

Duplicate Reimbursements

This is exactly what it sounds like: submitting the same expense multiple times. Maybe it’s intentional, maybe it’s "an honest mistake," but either way, it's a red flag.

Picture someone submitting a meal receipt via email, then tacking the same meal onto a monthly expense report. If your accounting team doesn’t have proper tracking in place, they might not catch the duplicate charges.

Ghost Vendors

Ghost vendors take expense fraud to another level. In these cases, a fake vendor is created—either on paper or within your accounting system—and payments are routed to accounts controlled by the fraudster.

Instead of paying for actual goods or services, you're cutting checks to a phantom company. These schemes are more sophisticated, but they happen, and they’re often buried deep in the normal flow of payments—especially in businesses without strong vendor approval processes.

Excessive or Luxury Purchases

Let’s say an employee books a work trip. Flights, hotels, and meals are covered. But instead of the standard hotel, they opt for the penthouse suite. Instead of economy airfare, it’s first class all the way. And somehow, the dinner receipt includes a $300 bottle of wine.

Individually, these might be brushed off as "upgrades," but together they paint a picture of someone abusing the company's expense policy to live a little larger on your dime.

Connecting the Dots to the Jaguars

Now, think back to Amit Patel. His scheme checked multiple boxes here. Unauthorized transactions. Fake documentation. Personal expenses under the guise of business. It’s textbook—just scaled up to jaw-dropping numbers.

But fundamentally, the same opportunities exist in smaller businesses every day. And just like the Jaguars, it often takes years before anyone notices.

So now that we've walked through what expense fraud can look like, the real question is: how do you stop it from happening to you?

How to Curb Expense Fraud Before It Starts

If reading through those common expense fraud schemes has you suddenly side-eyeing your own expense reports, you’re not alone. The good news is, stopping expense fraud doesn't require a crystal ball or an FBI-level investigation team. It comes down to putting the right preventative measures in place before the fraud can even begin.

Consider this your defensive playbook.

Establish Clear, Unshakable Policies

The first line of defense against expense fraud is having an airtight expense policy. Not a dusty PDF from 2012 that no one remembers exists—but a living, breathing set of guidelines that everyone on your team actually knows and follows.

Your policy should define:

• What qualifies as a business expense (with examples).
• Spending limits for different roles.
• Required documentation (original receipts, itemized bills, etc.).
• Timelines for submission and approval.

If your policy leaves any room for "interpretation," someone, somewhere, will interpret it in their favor.

Segregate Duties (Seriously)

One of the biggest reasons Patel’s fraud ran unchecked for years? He controlled the spending and the reconciliation process.

It’s essential to separate financial responsibilities. Ideally, the person who makes purchases shouldn't be the same person who approves or audits them. Create checks and balances that require more than one set of eyes on each step of the process.

Small business? You’re not off the hook. Even if your team is tiny, try to rotate responsibilities or have an external accountant or bookkeeper provide periodic reviews.

Audit Early, Audit Often

Audits don't have to be scary. In fact, making small, regular expense audits part of your routine can catch problems before they spiral into Jaguars-level disasters.

Look for:

• Duplicate expenses.
• Incomplete or suspicious documentation.
• Unusual vendor activity.
• Outlier spending patterns (that one employee who always seems to max out their per diem).

Bonus tip: Randomize your audits. People are less likely to get creative with their expenses if they know there's a chance you'll be checking up on them unexpectedly.

Leverage Technology

Manual reviews only go so far. Today’s expense management software can do a lot of the heavy lifting for you by:

• Flagging duplicate charges.
• Requiring receipts and approvals before processing reimbursements.
• Tracking spending trends over time.
• Integrating directly with your accounting system for seamless reporting.

If you're still using spreadsheets and email chains to handle expenses, it's time for an upgrade. There are dozens of affordable platforms designed specifically for small to mid-sized businesses that can help automate and safeguard your expense process.

Cultivate a Culture of Accountability

Policies and software are great, but at the end of the day, it’s people who commit fraud. That’s why creating a culture where accountability is expected and transparency is encouraged is critical.

Set the tone from the top. Leadership should follow the same expense rules as everyone else (yes, even the owner). Talk openly about fraud prevention during onboarding and team meetings. And create clear channels for reporting suspicious behavior—an anonymous tip line or inbox works wonders.

Remember: the more normalized it is to ask questions and review expenses, the less awkward it feels to say, “Hey, what’s this $900 dinner charge from last Thursday?”

Step-by-Step: Building an Expense Policy That Works

An expense policy is only as strong as the thought you put into it—and no, “use common sense” doesn’t count as a policy. To truly protect your business, you need a clear, detailed, and enforceable plan that leaves little room for loopholes or “creative interpretations.”

Think of this as your step-by-step guide to creating an expense policy that not only works but actually gets followed.

Step 1: Define What Counts as a Business Expense

Seems obvious, right? You’d be surprised. Vague categories like “travel,” “meals,” and “office supplies” leave a lot of wiggle room.

Spell it out:

• Business travel = flights, hotel stays, rental cars, meals during travel.
• Office supplies = items used strictly for work purposes (not your kid’s back-to-school shopping).
• Client meals = only meals with a legitimate business purpose (and yes, specify what that means).
• Fuel = Fuel for company vehicles making company trips. (not fuel for your personal car to get you to and from work, and not those extra snacks/lunch at the gas station)

And for extra clarity, give examples of what doesn’t count. Trust me, people will test the limits.

Step 2: Set Spending Limits

Not every employee needs the same budget. Define spending caps based on roles, departments, or types of expenses.

Example:

• Managers may have higher meal allowances than entry-level staff.
• No one, and I mean no one, should be booking first-class flights unless it’s explicitly approved in writing.
• Some departments may be eligible for meals, while others aren't.
• Set spending limits on alcohol purchases for wining and dining clients.
• BE SPECIFIC!

Clear limits prevent “I didn’t know that wasn’t allowed” conversations later.

Step 3: Require Documentation—No Exceptions

Every expense should have proper, itemized documentation. Not just a credit card statement. Not a screenshot from someone’s phone. Actual receipts, invoices, or digital records that clearly show:

• Date
• Vendor
• Amount
• Purpose

And make it a rule: No receipt, no reimbursement.

Step 4: Establish Approval Workflows

Who signs off on what? Your policy should outline the chain of approval for different expense types and amounts.

For example:

• Expenses under $100? Maybe just a manager's sign-off.
• Over $500? Requires approval from finance.
• Anything over $5,000? Direct owner or executive approval.

And don't forget to build in backups so there’s always someone available to review and approve expenses, even when key staff are out.

Step 5: Review and Update Regularly

Policies aren’t “set it and forget it.” The business world changes. Prices go up. Teams grow. Spending habits shift. Make it a habit to revisit your expense policy at least once a year.

Pro tip: If your expense policy still references fax machines or dictates how to file paper receipts in a three-ring binder, it’s time for a refresh.

Step 6: Make It Accessible (and Understandable)

A policy is useless if no one reads it.

• Store it in an easy-to-access location (shared drive, intranet, employee handbook).
• Keep the language simple. No legalese. No 12-point font crammed into 30 pages.
• Go over it during onboarding, and refresh the team periodically, especially if you’ve made changes.

Because at the end of the day, the best expense policy in the world only works if your team actually knows what it says.

Best Practices for Ongoing Fraud Prevention

Setting up a solid expense policy is a critical first step—but fraud prevention doesn’t end there. Think of your policy as the lock on your front door. Helpful? Absolutely. But you wouldn’t leave the windows open or hand out spare keys to just anyone, right?

To keep expense fraud at bay for the long haul, you need active, ongoing safeguards. Here’s how to build a system that makes fraud nearly impossible to pull off without someone noticing.

Rotate Responsibilities

One of the most effective (and often overlooked) ways to prevent fraud is to mix things up. If the same person is always handling expenses—submitting, approving, and reconciling—it becomes easy to hide questionable transactions.

Switch things around periodically:

• Have different people review reports.
• Require second-level approvals.
• Bring in third-party reviews from your accountant or bookkeeper a couple of times a year.

When people know someone else will eventually see their work, they’re far less likely to try sneaking something through.

Provide Regular Fraud Awareness Training

Most employees aren’t out to steal from you—but they also may not realize what qualifies as expense fraud, or how easy it is for small mistakes to turn into big problems.

Make fraud awareness part of your company culture:

• Train new hires on the expense policy.
• Hold annual refreshers.
• Share examples of what not to do (no need to name names... unless you want to scare them straight).

When employees understand the rules and the stakes, they’re more likely to play by the book—and keep an eye out for anything suspicious happening around them.

Enable Anonymous Reporting

Fraud loves secrecy. So give your team a safe, confidential way to report anything that doesn’t feel right.

Options include:

• A dedicated email inbox.
• An online form.
• An anonymous tip line through an HR platform.

Whatever method you choose, make sure employees know it exists, and encourage them to use it if something seems off.

Monitor for Red Flags

Technology is your friend here. Set up systems (or use software) to automatically track patterns and flag unusual activity. Pay special attention to:

• Expenses that are just under approval thresholds.
• Frequent last-minute submissions.
• Vendors with repetitive or round-number billing.
• Employees who consistently spend significantly more than their peers.

It’s not about assuming the worst—it’s about making sure nothing gets overlooked.

Bring in External Audits

For added protection, consider having an outside accountant or CPA firm periodically review your expenses. External audits offer a fresh, unbiased perspective and can spot patterns that internal teams might miss.

Even a light annual review can go a long way toward keeping everyone honest.

Apply What the Jaguars Learned (the Hard Way)

If you need a cautionary tale to share at your next team meeting, look no further than the Jacksonville Jaguars. Would Amit Patel have been able to steal over $22 million if someone else had been checking the books regularly? If the right systems had been in place to monitor spending? If anyone had thought to double-check those “routine” transactions?

Probably not.

The lesson? Put your safeguards in place now—before you have to learn the hard way.

Red Flags: How to Spot Expense Fraud Early

The harsh reality of expense fraud is that by the time you discover it, the damage is often already done. But the good news? Most fraud schemes leave breadcrumbs. The trick is knowing what to look for—and paying attention before those breadcrumbs turn into a full-blown trail of missing money.

Here are some of the most common red flags that could indicate expense fraud might be creeping into your business.

Behavioral Red Flags

Fraud isn’t just numbers on a spreadsheet—it’s people. And sometimes, the people tell on themselves through their actions long before the financials do.

Keep an eye out for:

• Overprotectiveness: Someone who gets defensive or territorial about “their” expense reports or is oddly reluctant to hand over documentation.
• Living Beyond Their Means: If an employee’s lifestyle suddenly takes a major leap—from economy car to luxury SUV, from modest apartment to high-rise condo—it might be worth checking whether their paycheck alone is footing the bill.
• Unusual Work Habits: Coming in early, staying late, and insisting on handling expense-related tasks solo can be a red flag if it seems designed to avoid scrutiny.

Transactional Red Flags

This is where the numbers can start doing the talking. Common patterns that should raise an eyebrow (or two):

• Frequent, small-dollar transactions just under approval thresholds. For example, if expenses under $500 don’t require a manager sign-off, and you’re seeing a whole lot of $495 charges... that's not a coincidence.
• Repetitive vendors you don’t recognize, or payments going to the same vendor over and over for questionable services.
• Round-number expenses, like repeated charges of $100, $200, or $500. Real-world expenses rarely land on perfect round numbers consistently.
• Last-minute submissions or batches of expenses submitted all at once, especially right before audits or year-end close.

Cultural Red Flags

The environment within your company can sometimes create fertile ground for fraud. Watch for:

• A lack of accountability in how expenses are handled.
• Unclear or outdated policies that no one remembers reading (or following).
• Pressure to hit financial goals that may tempt people to get “creative” with reimbursements.

What to Do When You Spot a Red Flag

First things first—don’t panic. A single suspicious charge doesn’t necessarily mean fraud is happening. Mistakes do happen. But if you start seeing multiple warning signs, it’s time to:

1. Review the expense in detail.
2. Check for patterns—has this happened before?
3. Look at supporting documentation.
4. Compare with your policy—was it followed?

And if things still don’t add up? That’s when you escalate. Bring in your financial team, outside accountant, or legal counsel, depending on the severity.

Because as we learned from the Jaguars’ experience, ignoring red flags doesn’t make them go away. It just gives them more time to turn into a full-blown crisis.

Expense fraud may not make as many headlines as the latest market crash or corporate scandal, but as the Jacksonville Jaguars learned the hard way, it can quietly drain millions from even the most high-profile organizations. And while your business may not be managing NFL-level budgets, the underlying risks are exactly the same—just scaled to your size.

At its core, expense fraud thrives on two things: trust and opportunity. Amit Patel had both. He was trusted. He had access. And he exploited a system with weak controls to fund a lifestyle that eventually cost the Jaguars over $22 million and years of reputational damage.

But here's the thing: Patel’s story isn’t as unique as we’d all like to believe. Expense fraud happens in small businesses, mid-sized companies, nonprofits, startups—you name it. It’s happening right now in businesses that thought, “That would never happen here.”

So, ask yourself:

• How airtight is your expense policy?
• When was the last time you audited your expense reports?
• Are there clear checks and balances, or have certain people become gatekeepers without oversight?

Because waiting until fraud happens isn’t a strategy—it’s an expensive lesson.

Now is the time to act.

Tighten up your policies.
Audit your processes.
Get serious about prevention.

And if you’re not sure where to start, that’s where we come in.

We help businesses like yours everyday build strong financial systems designed to keep fraud out and profits in. Whether it’s reviewing your existing controls, implementing new tools, or creating an expense policy from scratch, we’re here to make sure that while you're out scoring touchdowns, your business isn't fumbling your finances!

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Consult with a qualified professional for personalized guidance tailored to your specific needs and situation. Feel free to reach out to The Numbers Agency for a free consultation to see what how we can help!