It never ceases to amaze me how organizations fail to institute proper internal controls. In this case, an authorized bank account was set up and then controlled by one person.
Simple but effective controls include: 1) an operating board or committee evidenced by written bylaws or operating agreements; 2) only this board may authorize a new account; 3) a written and approved board action required for the new account; 4) the president and board chairman always are included as authorized signers; 5) checks require two signatures when the amount exceeds a board-determined amount.
The problem is solved before the rogue action happens. End of story for unauthorized accounts.