Macy’s Discovers $151 Million Accounting Cover-Up By Employee

Photo by Airam Dato-on: https://www.pexels.com/photo/people-walking-on-the-street-12305697/

Macy’s revealed Tuesday that a rogue employee concealed more than $151 million in expenses to hide an earlier bookkeeping error. 

An internal investigation found the employee acted alone and was not motivated by personal or financial gain, the NY Post reports.

The discrepancy, uncovered during a routine audit, stemmed from an initial mistake that the employee attempted to cover up by reallocating expenses across accounts. Over time, the adjustments snowballed into a significant financial gap.

The employee “acted alone and did not pursue these acts for personal gains,” Macy’s CEO Tony Spring assured analysts on Wednesday, according to the outlet.

Macy’s has since terminated the employee, implemented stricter controls, and enhanced financial oversight to prevent similar incidents.

Though shares dropped 2.4% following the announcement, analysts praised Macy’s swift response, noting its transparency as a step toward rebuilding trust with investors.

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