I’m the author of the post. I hinted, in a cryptic sentence near the end, that I necessarily had to leave out the worst parts of the story. No, no organized crime. But yes, there were people who appropriated resources that weren’t theirs and used every tool at their disposal to avoid scrutiny. To keep it vague, let’s just say some of the people involved had means that could seriously harm the businesses and their owners. And since these were primary businesses, that would have been a serious problem. The owners, knowing this, tried to find solutions but couldn’t really “afford” to remove the people involved. To be specific, in the end the owners themselves were aware of what was happening, but hoped to resolve it with a few more checks. Eventually, I realized that as long as there was enough money for everyone, they were okay with the ongoing theft.
Sounds like very straightforward tax evasion. The business brings in lots of cash, doesn't pay taxes, obscures the books enough so that there's no smoking gun. Some of the people participating in the scheme are skimming, but maybe less than the taxes would be, or maybe the owners are also implicated and would face criminal penalties themselves, so it's better for everyone just to keep it going and keep the books messy. Don't need mafiosos from TV for that.
You can have this kind of fraud without tax evasion, by abusing invoicing, business expenses and reimbursements. That's a reason people like when accounting doesn't work properly.
Not saying there was zero tax evasion, but this seems like a separate issue.
