Ed Neilson is the purchasing agent for Style, a nationwide high-fashion women’s online store.
Ed Neilson is the purchasing agent for Style, a nationwide high-fashion women’s online store. He joined the company after graduating from college five years ago. Over the years, Ed developed a close relationship with one of the company’s vendors—Sarah Love. Sarah owns a small manufacturing line, designing exclusive French fashion clothes and accessories. After dating for several years, Ed and Sarah became engaged four months ago. Sarah’s fashions have historically sold very well in the Style chain, but with the recent decline in the retail industry, high-fashion, high-cost item sales have decreased substantially. Ed believed this was just a short-term trend and thus decided to help his fiancée by guaranteeing $50,000 worth of monthly purchases from Sarah’s line.
Is Ed involved in a fraud scheme? If so, what type of fraud? Or is it not a fraud?
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