Defendants’ depositions ordered in suit alleging accounting software failed to detect $1M embezzlement

A Beaumont judge has ordered the depositions of two defendants whose accounting software failed to catch an employee who stole more than $1 million from the owners of a Port Neches medical office.

According to the complaint filed April 9 in Jefferson County District Court, Robert and Delaine Faseler claim they hired defendant Brammer, Begnaud & Lattimore CPAs to provide accounting services to their medical office.

In addition to the accounting firm, the Faselers name the firm’s partners — Larry Paul Begnaud, Austin Jon Begnaud and David Lauer Lattimore — as defendants.

The firm, which had been servicing the Faselers for more than 20 years, installed an accounting software system used by the medical practice’s employees.

However, when installing the software, the accounting firm failed to install a security function that would prevent manipulation of the system, the suit states.

In turn, an employee at the medical office allegedly embezzled nearly $1 million from the Faselers from 2005 until September 2010, the complaint says.

Court records show that on Jan. 17 Judge Donald Floyd, 172nd District Court, granted the plaintiffs' motion to enforce notice of depositions of defendants Larry and Austin Begnaud.

The motion was filed Jan. 11.

The suit alleges that it was not until Sept. 23, 2010, that the Faselers discovered the embezzlement.

The Faselers allege negligence against the defendants, saying they negligently failed to properly train the plaintiffs on the software and failed to properly install the software, among other negligent acts. They also allege negligent misrepresentation and breach of fiduciary duty against the defendants.

The Faselers are seeking an unspecified judgment, plus pre- and post-judgment interest at the legal rate, costs and other relief the court deems just.

Jessica L. Hallmark and Robert B. Dunham of Dunham Hallmark in Beaumont represent them.

Case No. E192-280

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