Employee theft of customer funds

[mrscbrowder]

South Carolina: An employee that was fired a week ago was questioned (by police) about some money missing from one of our customers a month or so ago. Upon his termination I was given information that he did indeed steal that money. I am trying to find out what my leagal responsibilities are. How can I report this without tarnishing our company name and "save face" in light of this incident. I of course am planning to pay back the cusotmer for his loss. I am the owner of this business and we have ben in operation just over 1.5 yrs. Hence lots of start up debt has occured making this rather large sum that he stole impossible to payback all at once. What is the best course of action?What is the name of your state (only U.S. law)?

[sallylong]

You do have a legal and ethical responsibility to inform your custimer. As for paying the money back, if your employee is charged with the theft of the money and convicted of this crime, he/she will be responsible for making restitution. As a business owner, you should immediately inform the customer of the missing funds. If you don't and they find out (which they will if criminal charges are pressed) your business reputation will be tarnished.

[mrscbrowder]

It was my thought that I would repay the customer and seek the restitution as I was the one who employeed this thief to begin with. I don't know wether to tell the customer or the police first. As always thank you for your replies.