Corrupt HR manager made whopping Rs 20 crore by firing workers but keeping them on payroll

Throughout history, individuals have devised increasingly sophisticated and deceptive tactics to misappropriate funds, spanning corporate settings, small enterprises, and government institutions.
In an unusual case from China, a technology company based in Shanghai became the epicenter of a perplexing financial scandal.

Official records indicated that 22 employees were actively working for the firm, yet not a single person had ever encountered them. These so-called employees held "invisible" positions, with their daily attendance logged, official records maintained, and salaries disbursed punctually. This strange and elaborate scheme recently captured the attention of Chinese media.

The incident came to light at a tech company situated in Shanghai’s Minhang district. One individual, Shao Sun, had been listed as present at work every day for approximately eighteen months, despite never having been seen on the premises. Nevertheless, his salary was consistently deposited into an account. While the scenario may sound like something out of a supernatural tale, it was, in reality, a deeply orchestrated act of corporate fraud.

At the heart of this deception was a high-ranking human resources manager who held exclusive control over hiring and termination procedures within the company. Exploiting his authority, he would formally dismiss employees on paper but secretly keep them on the payroll. Over an eight-year span, he managed to siphon off the salaries of 22 fictitious employees without detection.

The fraudulent operation unraveled in 2022 when a sharp-eyed individual scrutinized the payroll records and questioned Shao Sun’s employment status. Upon further investigation, the company uncovered the extent of the deception, revealing a systematic and prolonged scheme of embezzlement.

Through this intricate scam, the corrupt HR executive illicitly amassed a staggering sum equivalent to approximately Rs 20 crore. Once exposed, legal proceedings swiftly followed, leading to his conviction. He was sentenced to 10 years and two months in prison and was ordered to pay a financial penalty of nearly Rs 3 crore. However, when compared to the vast sum he had embezzled over the years, the fine appeared minuscule in proportion.

This case serves as a stark reminder of the vulnerabilities that exist within corporate financial structures, emphasizing the necessity of stringent oversight and audit mechanisms to prevent such fraudulent activities. While the scale of this deception was extraordinary, it highlights how unchecked power in administrative roles can lead to significant financial losses. As companies continue to evolve, ensuring transparency in workforce management and payroll operations remains critical to safeguarding institutional integrity.