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GM Makes Large Accounting Mistake

Company Overpaid By Millions

POSTED: Thursday, March 30, 2006

General Motors has been in the spotlight lately with financial problems, and now one big mistake cost the company a lot of money.

GM owed Jack Paulis, owner of Paulis J.R. Industries, $1,900, but through an apparent accounting error, transferred nearly $4 million into Paulis’ account, Local 4 reported.

The error occurred when GM ordered one part for $1,988, but somehow the statement was noted as ordering 1,988 parts, and transferred the appropriate funds to cover what was believed to have been the accurate amount.

Paulis said he was having a hard time returning the money, and when he made attempts to call it seemed as though they didn’t care and they showed no sense of urgency.

“I even said that I would drive over myself,” said Paulis.

After several attempts were made to contact GM officials, Paulis said nobody came to his home to get the money and nobody from the company called him back, Local 4 reported.

One GM representative advised Paulis to send the check to Arizona, but before he did that, he phoned Local 4, who in turn contacted GM officials.

Once there was a connection, GM representatives became serious about the situation and had Paulis drop the check off at a local GM office, according to the station’s reports.

The money is back in the right hands.

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