The Austin, Texas, Office of the City Auditor uncovered a $1.3 million theft scheme conducted by its former director of libraries, who used his city credit card to purchase printer toner and resell it online, the Austin Monitor reports. The employee also purchased electronics and home goods for his personal use with the credit card.
“This the largest case our office has investigated involving fraud and abuse,” Brian Molloy, chief of investigations for the auditor’s office, told the Austin Monitor. Molloy said the city ran tests on other employees’ credit card records and did not find similar examples of fraud.
An anonymous informant reported the employee’s scheme to city auditors in March 2019, and he was placed on administrative leave in July of that year. Auditors are also examining the involvement of three supervisors at the Austin Public Library who approved the employee’s purchases. The employee’s home address and personal email address were listed on many of the receipts the supervisors approved.
A Travis County grand jury indicted the employee for first-degree felony theft. He could face additional prison time if convicted because he was previously convicted for theft in 1989 and 1993.
In response to the scandal, the Austin Public Library department separated the duties of purchasing and receiving supplies, reduced the number of staff credit cards, and eliminated the use of contract cards for office supply purchases. Other major cities, including Las Vegas and Philadelphia, have lost $6.7 million and more than $1 million, respectively, in toner and ink reselling schemes. 
Elizabeth Mullen is an editorial consultant for Internal Audit 360°.