what kind of attorney do you need if you suspect someone from embezzling from your company

by Dr. Eldora Feil Jr. 10 min read

Before you lose money from your company through embezzlement, you should talk to an employment attorney. This type of attorney knows all your local employment laws and how expertly handle and prosecute cases of embezzlement.Feb 14, 2022

Why do you need an attorney for embezzlement?

When do I need a trust litigation attorney? The moment you suspect a breach of trust, embezzlement, or a trustee stealing from a trust, it’s time to contact a trust litigation attorney . Many trust lawyers will offer a free consultation, and many won’t charge you a thing unless you obtain a settlement or are successful at trial.

What should I do if I suspect embezzlement?

Sep 12, 2019 · And of course do the same if you terminate an employee. Contact Your Attorney About Employee Theft. Involve your attorney early for advice, especially in serious cases. Your attorney can guide you as to how to conduct an investigation, how to preserve evidence, when to call in the police, how to handle the employee, and how to notify third parties.

What to do if an employee is embezzling from your business?

Nov 18, 2019 · If you do suspect embezzlement, our experts recommend the following dos and don’ts: Do Call Your Lawyer. If he doesn’t specialize in firing employees and investigating employee crime, have him recommend somebody who does. Do Not Alert Your Staff. Don’t try to question people on your own.

Should I report an employee who has been embezzled money?

Sep 26, 2017 · When you suspect embezzlement, consult with an attorney and law enforcement to get specific advice on how to proceed. Embezzlement is treated like any other crime of theft, and there are no specific laws regarding employee theft. However, many local law enforcement departments may not have the resources to investigate white-collar crime.

What do you do if you suspect embezzlement?

If you do suspect embezzlement, our experts recommend the following dos and don'ts:Do Call Your Lawyer. ... Do Not Alert Your Staff. ... Do Bring in Outside Advisors. ... Do Not Bring in Those Advisors During the Workday. ... Do Communicate Carefully. ... Do Not Contact Law Enforcement… ... Do Keep Your Emotions In Check.More items...

Is stealing from your own company a crime?

Embezzlement is basically theft, but it is by someone in charge of, or with power over, the assets that are stolen or misused. ... Typically, it must be proven that the employee had access to the asset or money due to their position in the company and that the person misused this authority for their own gain.

How do you investigate theft in the workplace?

Here are the steps you should follow to investigate theft in the workplace.Follow Company Policies.Assign an Investigator.Emphasize Confidentiality.Begin the Investigation ASAP.Gather Evidence, Conduct Interviews, and Trace Assets.Notify the Police.Discipline or Terminate the Employee.Recover Losses.More items...•Nov 16, 2020

How do I turn in a company for embezzlement?

Reporting to Law Enforcement. Call the local police or sheriff's department. For most cases of employee theft, your local law enforcement agency handles the investigation. Call a non-emergency number or go to the office in person to file your report.Aug 10, 2021

What is an example of embezzlement?

One example of embezzlement would be if a store clerk took money from transactions. In this case, the money would be the property of the business, but the clerk opted to take the money to use for himself or herself. Another example is if a payroll clerk creates fake employees and pays those fake employees.Jun 29, 2016

Can a business owner use company funds for personal use?

A misuse of company funds for personal purposes is clearly illegal. It is unlawful to use company funds like a personal piggy bank. In legal terms, it is a breach of fiduciary duty to misuse funds, especially for one's own benefit.

Can an employee be dismissed for theft?

In a nutshell, stealing from your employer can amount to gross misconduct. This means that you can be dismissed immediately and without notice, which won't bode well for future employment.Feb 9, 2021

What is a proactive investigation?

Proactive cases do not present to law enforcement at all; instead, they result from operations that are pre-planned, over time, through the use of more advanced investigative methods and criminal intelligence.

What is a fact finding investigation?

Investigations are fact-finding exercises that collect relevant information on a matter. If you make a decision on a case without completing a reasonable investigation, this can make any subsequent decisions or actions unfair and leave you vulnerable to legal action.

How do you get evidence of embezzlement?

What evidence is required to prove embezzlement?The alleged embezzler had a fiduciary obligation to the victim. ... The defendant acquired the money or property at issue via his or her fiduciary relationship with the victim.The defendant took ownership of the property that was transferred and/or stolen.More items...•Sep 1, 2017

What is false pretense?

under false pretenses : by saying something that is not true, by pretending something, etc.

What defines embezzlement?

Definition. Fraudulent taking of personal property by someone to whom it was entrusted. Most often associated with the misappropriation of money. Embezzlement can occur regardless of whether the defendant keeps the personal property or transfers it to a third party.

How to report an embezzlement to the police?

1. Work out an agreement with the employee. Depending on the extent of the embezzlement and personal factors, you may decide that you don't want to report the incident to law enforcement. If the employee volunteers to repay the funds they've embezzled, draft a contract with the help of an attorney.

Who handles embezzlement cases?

If the embezzlement occurred in more than one state, or if it violated federal law, the FBI and the US attorney handle any criminal investigation and prosecution. In some instances, such as if bank or securities fraud are involved, you are required to report the activity to federal authorities.

How to report employee theft?

Call the local police or sheriff's department. For most cases of employee theft, your local law enforcement agency handles the investigation. Call a non-emergency number or go to the office in person to file your report.

Who is Jennifer Mueller?

Jennifer Mueller is an in-house legal expert at wikiHow. Jennifer reviews, fact-checks, and evaluates wikiHow's legal content to ensure thoroughness and accuracy. She received her JD from Indiana University Maurer School of Law in 2006.

How to get a copy of a police report?

It may be available immediately, or you may have to go back for it. Make copies for your company records. Get the name and badge number of the officer who completed the report so you can contact them directly if you need to follow up.

What is a trust litigation attorney?

A trust litigation attorney handles the civil litigation (monetary relief) aspect of an embezzlement case, not the criminal case. Any beneficiary or trustee may choose to only prosecute an embezzlement claim in a civil court, without asking for criminal charges to be filed.

Is embezzlement a crime?

Embezzlement is a form of theft, and it is a crime. In the case of family trusts, embezzlement refers to misappropriation of funds belonging to the trust, or to the decedent that should belong to the trust but were stolen before their passing.

What is a trustee in a trust?

A trustee is the individual or entity charged with managing the trust. It is the trustee’s duty to make responsible decisions with the trust fund assets. A trustee typically cannot take any funds from the trust for him/her/itself — although they may receive a stipend in the form of a trustee fee for the time and efforts associated with managing ...

What to do if trustee steals money?

If trust beneficiaries feel that the trustee is stealing funds, they should ask the trustee to account (report on what they’ve done with trust assets). If through the accounting, or otherwise, beneficiaries learn that a trust stole money, they can charge the trustee with breaching their fiduciary duty and have them removed and surcharged.

What is breach of trust?

A breach of trust most commonly refers to a trustee’s breach of fiduciary duty. A trustee is required to act prudently and consistently with what a reasonable trustee would do in a similar circumstance. Trustees cannot play favorites, act in a manner that does not benefit the trust beneficiaries, etc. In essence, a trustee has a fiduciary duty ...

Who is liable for employee theft?

Third parties such as banks may be liable for employee theft losses. You should put them on notice. But be careful what you say. Third parties will seize on any reason not to pay, including casual comments that could be interpreted as admissions against your interests.

Does crime insurance cover employee theft?

A crime insurance policy may cover employee theft losses, and you will need to file a claim. Your attorney can help protect your claim rights. Note: standard business insurance policies typically do not cover loss from employee fraud. You need a special policy.

What is the first step in a security investigation?

The first step is always to get the facts in order. What you need is proof. Good proof might consist of catching an employee on a security camera stealing money.

What can an attorney do for you?

Your attorney can guide you as to how to conduct an investigation, how to preserve evidence, when to call in the police, how to handle the employee, and how to notify third parties. If you suspect embezzlement of large sums of money or a significant pattern of fraud, calling your attorney is essential!

What is embezzlement fraud?

Embezzlement is a very specific type of fraud, and most cases involve taking money from an employer. In legal terms, embezzlement is the taking of goods, whether money, merchandise or information, that has been entrusted to you or your employer for your use or gain.

How to prove embezzlement?

When you suspect an employee is embezzling, the first step is to gather evidence to prove your suspicions. Businesses with sloppy bookkeeping are often targets for embezzlers; when the books are in order and accurate, it’s significantly more difficult to hide illegal transactions. Keep a close eye on the books, and make copies of paperwork regarding suspicious transactions. Look for patterns of cash disappearing and sudden decreases in cash flow or out of the ordinary expenditures, such as a significant increase in office supply purchases. When you have these records, you can more easily prove your case for embezzlement should you choose to prosecute.

What is a termination document?

With the advice of human resources and an attorney, create a termination document that outlines terms of confidentiality, future references and restitution, if possible. For example, in some cases, an employee may agree to give up his final paycheck, bonuses or stock options to repay you for his theft. You cannot take that money without consent, ...

How to prevent employee theft?

While it can be difficult to prevent all employee theft, by establishing a training program that clearly outlines a zero-tolerance policy for employee theft, you may deter a potential embezzler. The policy should detail the steps that you’ll take if you discover theft, up to and including prosecution. Having this written policy in place -- and a signed declaration of understanding by the employee -- gives you a road map for action when there is a problem and removes some of the emotional aspects of the decision. In addition, consider purchasing an insurance policy that guards against employee theft. At the very least, if something should happen, you can file a claim and recoup some of the costs of the theft.

What happens if a company breaches its fiduciary duty?

The breach of fiduciary duty on the part of the thief also put your company at risk, and the resulting damages to the company’s performance and any financial impact on the performance of your business adds to the civil damages that can be recovered. Proving that a business partner, co-owner or shareholder is stealing from ...

Who is Daniel Watkins?

Call (858) 535-1511. ABOUT THE AUTHOR: Daniel Watkins. Mr. Watkins is an experienced litigator and true trial attorney with over 50 Jury and Bench trials to his credit in 25 years of practice.

Why is it important to act quickly?

It is often important for the individual to act quickly in order to preserve his or her rights and mitigate the potential financial consequences.

What is a power of attorney?

A power of attorney is a written document that gives an agent the legal authority to act for the principal who establishes the power of attorney. This designation is for financial purposes, such as opening a bank account, writing checks, implementing new investments and conducting financial transactions. A power of attorney can give someone the ...

Is elder abuse a felony?

Elder Abuse. Several states have laws related to elder abuse. In some cases, the state includes taking financial advantage of a vulnerable elder in the statute. These may be criminal or civil laws with varying degrees of penalties, sometimes resulting in the possibility of charging a felony against the abuser.

What is legal authority?

This legal authority can be an important planning mechanism that allows someone to make financial decisions and conduct financial transactions in the event that the principal cannot do so for himself or herself whether temporarily or permanently.

Can a power of attorney be revoked?

Individuals who believe that their power of attorney is being abused or who are concerned about a loved one may wish to discuss their case with a lawyer. A lawyer may be able to revoke the power of attorney so that no further damage is done.

What is a legal claim in a divorce case?

Another possible legal claim is conversion. This claim basically asserts that the agent has stolen from the principal. Successfully litigating this type of case typically requires showing that the agent used the principal’s property in a manner inconsistent with his or her rights of ownership. Additionally, the principal may have the duty to demand the return of his or her property and that the agent refused to return it.

What is the legal claim of an agent who lied?

In some cases, the legal claim may be that the agent lied about circumstances which caused him or her to take action or have the agent take action on his or her behalf that was adverse to his or her interests.