Mismanagement of Funds - Resignation

[iam4est]

What is the name of your state? Colorado
arial
My friend recently resigned from a position before being fired for mismanaging funds. She had an account that was in her and her director’s name that she was responsible for. Not to make excuses but her and her family (myself included) were being threatened by someone in prison who guaranteed her that he knew people on the outside so she used money from this account to give him money. After almost 8 years of no one caring about this account upper level management wanted to account for the money and close the account. My friend knowing she was responsible for it put $3,000 back into the account that she got from a credit card and resigned from the job. HR would now like a written letter from her describing what she did with the account. This account was used whenever money was needed for fund raisers, doughnuts etc. and most of the time there were no receipts or documentation from the director or my friend. What type of legal ramification is there from her writing this letter since she was solely responsible for the account? Also, her director told her that she could decide what to tell staff about her departure. She decided that stating it was time to move on was suffice. Some staff has since contacted her to wish her well and mentioned that the director told the entire staff that her departure was for mismanagement of funds. Does she have a case against the establishment, which is a not for profit, for defamation of character? Any advice would be SO much appreciated!! Cheers!

 

[cbg]

No, she does not have any case against the manager or the company for defamation or anything else. She mismanaged funds; she was fired for mismanaging funds; the manager said she mismanaged funds. The manager spoke the truth. Truth is an absolute defense to defamation claims. The fact that the manager said she could decide what to tell her staff is irrelevant.

 

[SuzieWahoozie]

It seems your friend has gotten herself into some deep guano.

Since you mention she worked for a non-profit organization, the company probably needs a written accounting of the account activity in order to maintain it's non-profit standing. Non-profits have to be very careful about the way they handle their funds. Mismanagement can jeopardize alot of their funding resources, and even their non-profit status.

As for the "defamation," she has no case. The manager is free to tell anyone anything he wants about her departure as long as it is the truth, what he reasonably believes to be the truth, or his honest opinion. Heck, he can take out a TV ad and erect a billboard on the interstate announcing her departure and the reasons for it if he wants to. However, since you indicate the manager inquired as to what she would say, it appears his inteniotns, at least initially, were to accommodate her request. My guess (and it is purely a guess) is, he decided after more deliberation, and possibly some conference with other management members, that telling the truth, at least to the internal staff, was the best course of action. Especially since they have a huge responsibility to ensure that this type of mismanagement never occurs again. Letting the other staff know the "consequences" for mismanagement could be helpful along those lines. Nonetheless, your friend could call the manager and inquire as to why he changed his mind about what would be said. She can also ask what he intends to say to prospective employers when they call for references.

Your friend really needs to learn a lesson from all this. NEVER NEVER NEVER borrow, take, or even look lustily at money that belongs to your employer! She's lucky they didn't file criminal charges against her for theft, fraud, and probably other things I can't think of right now!

She can check with her attorney on the pros and cons of doing so, but I think she'd be better off writing the letter as they are requesting. True, they could use it as a "confession" on her part to her actions, but she has already "confessed," hasn't she? As I said, they may only need it to maintain funding. She could always ask them why they need the letter...has she?

 

[Beth3]

Not to make excuses but her and her family (myself included) were being threatened by someone in prison who guaranteed her that he knew people on the outside so she used money from this account to give him money. Her recourse was to contact the police, not to engage in a criminal act herself. (Why do I think there's more to the backstory than you're telling us???)

My friend knowing she was responsible for it put $3,000 back into the account Making surreptious restitution eight years later when she was about to be found out doesn't make it right or her prior actions as though they didn't happen.

What type of legal ramification is there from her writing this letter since she was solely responsible for the account? Legal ramification for who? The company? None. Your friend? She could be prosecuted for embezzlement and go to jail.

Some staff has since contacted her to wish her well and mentioned that the director told the entire staff that her departure was for mismanagement of funds. Does she have a case against the establishment, which is a not for profit, for defamation of character? Are you kidding? Your friend is a thief. "Mismanagement of funds" is being kind.

If your friend's employer has chosen not to file a criminal complaint, she should consider herself lucky.

 

[iam4est]

Thanks!!

I really appreciate everyone’s reply! I’m not sure if there is much more to the “back story” other than just pure fear. I have read some of the letters she has received and this man stated that he wanted to be know with the likes of Dahmer and Gacey and that no woman, man or child was safe from his wrath. She has been in touch with a counselor who is working with the police on the threatening letters but it doesn’t help when you hear the bumps in the night.

The questions about the defamation of character is just grasping at straws to avoid jail time and penalty even though it maybe deserved. However convoluted I believe her actions came about by the fear and I truly wish she would have contacted me or the authorities to avoid this fiasco but this is where we are at now and we can’t go back in time.

Again, thanks for everyone’s input!

 

[Beth3]

Why is she even corresponding with a sociopath???

 

[HomeGuru]

Why is she even corresponding with a sociopath???

**A: maybe she is one too.

 

[SuzieWahoozie]

Is there a club for sociopaths?

 

[Beth3]

Yes. It's called the federal penitentiary.