When Trust Goes Wrong: Lessons from a $527,000 Embezzlement Case in Camarillo
In late September 2025, the Ventura County District Attorney announced the conviction of James Matthew Godsey, a Camarillo man who stole over $527,000 from his employer, Channel Islands Aviation, between 2017 and 2023.
As the company’s bookkeeper, Godsey managed payroll and accounts payable — and used that position of trust to inflate his pay, create fake reimbursements, and quietly siphon company funds for years.
How It Happened
According to court documents, the theft went undetected because leadership “trusted him to perform his duties honestly and did not scrutinize his payroll records.”
It wasn’t until the company was sold and a new manager performed an audit that the fraud was discovered. By then, the losses exceeded half a million dollars.
The Real Lesson for Business Owners
Trust is important, but trust without verification is risk.
Even small businesses with long-time, “loyal” employees can fall victim to internal theft when there’s no system of checks and balances. A single person handling all payroll and payables — without independent review — creates opportunity for fraud.
5 Red Flags Every Business Should Watch For
One employee controls both payroll and accounts payable.
Unexplained reimbursements or “bonus” payments appear.
Financial reports are delayed or inconsistent.
The same person reconciles the bank account and approves expenses.
There’s resistance to outside review or bookkeeping assistance.
How Professional Bookkeeping Helps Prevent Embezzlement
At Synergy Bookkeeping, we regularly see businesses that waited too long to seek help — often after finding out money was missing.
A professional bookkeeping system introduces separation of duties, regular reconciliation, and third-party accountability, which dramatically reduce fraud risk.
Key safeguards include:
Independent monthly reconciliations
Secure payroll workflows with double authorization
Expense and reimbursement documentation
Periodic financial statement reviews
Cloud-based audit trails that flag unusual transactions
A Better Way Forward
This case is a powerful reminder: fraud doesn’t happen overnight — it happens quietly over time.
A consistent, transparent bookkeeping process can help ensure your business never becomes the next headline.
If you’re not sure who’s checking your books — or if anyone is — now’s the time to put safeguards in place.
👉 Schedule a free 15-minute consultation to learn how professional bookkeeping can protect your business, improve accuracy, and bring you peace of mind.