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January 20, 2008 9:30 PM PST

This tech job's paycheck is a steal

by Steven Musil

It may sound like a scene from the movie comedy Office Space, but authorities in New Jersey are not laughing.

Like one of the movie's characters--who erroneously receives paychecks--a Chicago-area man has allegedly been receiving nearly $100,000 a year for much of the past five years without actually showing up at the office or doing the job.

And that is what landed Anthony Armatys, 34, in jail about five years after he accepted a job at Avaya Communications, according to a report in the Daily Herald near Chicago. He accepted a job at Avaya in 2002, but backed out without starting the job, the paper reported. However, due to a system error, a paycheck was allegedly being deposited in to Armatys' bank account for the past five years--to the tune of about $470,000.

Armatys was arrested Wednesday at his Palatine, Ill., home on one count of theft by deception for knowingly accepting paychecks for a job he never had, police said. The arrest was the culmination of an 11-month probe by detectives in New Jersey, where the communications company is based.

He may have been the unwitting recipient of a clerical error, but--in the eyes of legal-savvy Daily Herald readers--Armatys crossed the line when he allegedly called Fidelity Investments, identified himself as an Avaya employee, and arranged the withdrawal of about $2,000 from an employee retirement fund to which the company had contributed.

Armatys is being held on $50,000 bail while he is awaiting extradition to New Jersey.

The Armatys family told the newspaper that it had "no comment at all."

Umm, yeah. I think prosecutors are gonna have to ask you to return those paychecks.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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It took 11 months to figure this out?
by kgsbca January 21, 2008 12:28 AM PST
what was the hard part, getting an address from the bank?

So who was more incompetent, the HR department at Avaya that let this guy get paid for over 4 years for a job he didn't have, or the police, who took 11 months to find a guy who had a bank account?
Reply to this comment
This occurs when too little oversight/too much outsourcing happens
by tharionwind January 21, 2008 3:36 AM PST
There isn't enough due dilligence anymore. Too many things get outsourced. Whether it is tech support, logistics or even HR functions - most companies of significant size do not retain enough in-house folks to make sure things are done right. To top that off - just because a manager has an MBA does not qualify him or her as a decent executive that can get the job done. Usually its an administrative assistant that makes sure a manager has all the paperwork done right.
Ahem...
by phillynets January 21, 2008 6:22 AM PST
They could pay me that way for 5 years. When it was time to touch the money I'd have cleaned out the account and gotten out of Dodge.

Since he hadn't touched it before, he could claim ignorance and take his chances with a jury. Once he did, however, he could call it Christmas and, again, take his chances with a jury.

The who's stupidest in this story question: the auditors, the government, and finally the guy for only taking a few bucks...
Reply to this comment
Kinda like...
by sportav January 21, 2008 8:15 AM PST
...the guy who got fired from the bank for stealing a pen.
It took Seton Hospital (Austin) 2 years....
by fred dunn January 21, 2008 7:25 AM PST
To stop insuring my wife after she quit. This was after countless calls. She never used the insurance as that would not have been ethical.
It finally took legal threats after my wife was disabled and on disability.

Seton treated her badly. It used to be a Catholic run Hospital (don't know anymore) but they may as well call it "Satan Hospital".

My wife has since passed away. I believe in Karma and what comes around goes around.
Reply to this comment
SOX compliant procedures not validated or financial blunder?
by gman450 January 21, 2008 8:56 AM PST
Where there is one mistake ? usually means more? The CEO should be investigating, as he/she may be asked to wear an orange jump suit in the coming months.
Reply to this comment
SOX wasn't around (sorta).
by Penguinisto January 22, 2008 7:34 AM PST
Dude ditched the job in 2002, so it may have flew under the radar in regards to Sarbanes-Oxley...

SOX came about in July of 2002, but IIRC there was a 12-month period in which the corps were still hustling to get compliant procedures in place. Like most corps, Avaya probably grandfathered in a lot of existing states of data, if you will, which likely includes this guy.

/P
If he can't pay...he can work off his debt...everyone wins
by stlwest January 21, 2008 11:52 AM PST
If he didn't cause the system glitch he isn't guilty of anything, well the Fidelity deal was kind of gratuitous but. Of course Avaya should be able to request the funds be returned since this wasn't his money. If he agrees to return the money or the greater portion thereof, Avaya should drop the charges and settle.

Of course the fact that Avaya doesn't even have managers approve employees on thier budgets or that managers don't know who they are paying is pretty bad for Avaya.

This guy probably figured they would come calling one day. If he spent all the money and won't agree to repaying Avaya, well he's an idiot and will go to jail, but it should be entirely up to him, right now, agree to make it right or go to jail.

Maybe Avaya can find a spot for him and let him work off his debt......
Reply to this comment
Everyone does NOT win!
by im3ngs January 21, 2008 7:13 PM PST
Work off his debt?? Would you hire someone who defrauded you
for five years? Please. No matter how skilled the man is, he is still
dishonest and a thief.
View reply
He knew what he was doing
by Sourdust January 21, 2008 2:21 PM PST
He can't claim ignorance. The fact that he knew about the Fidelity retirement account and knew it was linked to Avaya means that he was getting statements. Stealing is wrong, no matter who you steal from. And just because the company made a mistake doesn't mean that it's OK.

It's disappointing to see that people think there was nothing wrong here.
Reply to this comment
I'm sorry, that's just not his fault
by sarreq January 22, 2008 10:50 PM PST
About the initial $470000, if Avaya messed up, how can it be considered "Theft by deception"? This doesn't make any legal sense at all, whether he knew he was receiving it or not.
It was definitely stupid of him to withdrawal anything from the retirement fund, and he should only have to pay back that $2000, but for the rest, Avaya messed up, not him, he shouldn't have to pay for the idiot who's actually responsible.
Reply to this comment
I have to agree!
by joan151 January 23, 2008 10:45 AM PST
I fault Avaya and the police department for letting this get out of hand. Who needs 11 months to investigate a situation like this. If he did anything wrong, they should have nabbed him 11 months ago. I bet Avaya was looking for loopholes in the legal system to justify their stupid mistake!
I agree that this isn't his fault
by Leria January 23, 2008 12:21 PM PST
and maybe if we start putting things like this on the businesses instead of the 'little guy', the big businesses will start having a little more oversight on their payroll.

We keep on saying "He should have been honest!" but there is no law that says you have to give back money that someone gives you, even if it is a mistake on their part.

If there is, it shouldn't be there because it lends itself to abuse by companies and people who just don't want to pay someone the money that they rightfully earned.
View reply
HE DID NOTHING WRONG..
by HVIP January 23, 2008 7:31 AM PST
THEY SENT HIM THE MONEY..

AS LONG AS HE PAID HIS TAXES THEN LET HIM GO....

THE COMPANY SHOULD JUST CALL IT A LOSS...
Reply to this comment
They are basically saying
by Leria January 23, 2008 12:22 PM PST
That because he didn't call the company and inform them of the mistake (we do not know that he didn't do that, only one call or letter to the company meets his legal responsibilities), that he was 'stealing' from them.

Unfortunately, the company cannot prove that he did not try to inform them, and you only have to try ONCE by most state and federal laws.
He did nothing wrong?
by topry January 25, 2008 2:02 PM PST
Oh please, where are your ethics and morals? Taking something to which you have no right is both ethically and morally wrong. As for the legal matter, that varies state to state. However, I would doubt that he did not spend any of the money he was paid and each time he did, he knew he was taking money that was not his. Why else would he contact Fidelity and pull out the funds and misrepresent himself as an Avaya employee. This has fraud all over it - send him to jail!
Reply to this comment
Ethics and morals?!?! PLEASE!!!
by jbaesman January 27, 2008 2:47 PM PST
This is Chicago!!! The city is completely corrupt. Just look at who all the major municipal buildings are named after -- Capone era politicians who were on the take. The past five Illinois governors have been indicted on corruption and there's talk of indicting the sitting governor. It's just part of the mentality here.
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