Can you embezzle from a company that you own? Who would you report it to if you knew someone who was?

Question

I work for a company with 4 full time employees. The owner is also the president. He is robbing the company blind. Can't he get into trouble for that or does the laws protect him when he does something like this. We've paid for his new truck as well as 2 of his houses. He owed the company $12,000. He found out a way where that not only got wiped out but the company now owes him $30,000. How is that possible?

Answer 1

you probably should find another job elsewhere

if you don't, this is going to drive you crazy
and if you say anything, you'll likely get fired

so i suggest you skip the hassle and find that other job

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that said ...

If M. le Presidente has partners in owning the company (other shareholders), it seems as though he's cheating them.


on the other hand, he may have none, so there'd be no other owners who'd care.

In which case, if this corp files taxes as a regular corporation [and not as if it were a sole proprietorship], he is probably defrauding the tax collectors.

{You didn't say which country this is in, so I can't guess whether it is the Inland Revenue or the Internal Revenue Service.}

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What he is doing by treating the corporate assets as if they're his own, even if he has no other stockholders to defraud and is square with the tax collectors, if breaching the [invisible] line between corporation and himself. Should, some day in the future, the corporation get into financial trouble, that breach may open the doors for the company's creditors to seize his personal assets to satisfy the debts to them.

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The more I think aobut it, the more I think you should get a different job. It seems apparent that his level of honesty and yours aren't the same -- which'll become a problem when he asks you to treat customers as if they are roaches.


GL