How hard is it to prove embezzlement or prosecute? We have an ex-employee who was writing payroll checks to regular employees who didn't work those weeks and cashing them himself. We found one for sure, but must we go back through every single check for every employee and look for more or can we prosecute based on the one?
2006-11-30 11:22:44 · 2 answers · asked by wrjones559_1999 3 in Politics & Government ➔ Law & Ethics
Look for more. in this case the more the better.
Thank you very much, while you're up!
2006-11-30 11:26:00 · answer #1 · answered by producer_vortex 6 · 1⤊ 0⤋
There may be more than just embezzlement charges. Signing other people's checks to an unauthorized party can constitute another type of felony if the amount exceeds a certain limit.
If you haven't already done so, be sure to contact the proper authorities, an experienced lawyer, and an accountant to follow correct procedures.
You would need to make sure all checks issued under an employee's name were indeed earned and received by that employee; otherwise, your IRS records will be amiss and cause other problems, either for your business or the employees.
So for that reason, as well as recovering and reporting as exact an amount of loss as you can, it is better to check for every single discrepancy. If you have insurance, check with your company what is required to document and collect damages. In any case, you would need the financial records to be straight, regardless of the level of crime and prosecution sought.
2006-11-30 11:43:00 · answer #2 · answered by emilynghiem 5 · 3⤊ 0⤋