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Embezzlement of funds and restitution

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SqueakyPie

Junior Member
What is the name of your state (only U.S. law)? WA

Recently took over as treasurer of a small members only organization that is organized as a non-profit in the state of wa. We provide monthly events that are closed to our members only.

Club had a net loss in 2009 and the outgoing treasurer just informed me that she had taken almost $5,000 hence the net loss. She did this because she was in desperate financial need so I was told. At this point only myself and 1 other person knows of this and the other person is offering to help her out by paying back the funds. She does not have a record and has never done anything like this before, but they want to do it hush hush and just deposit the funds. I disagree, as there is no way to explain away a large deposit and think the former treasurer could come clean to the rest of the board/membership. She is afraid of what might happen as she should be.

My question, if I and or the other person who knows do not bring this to the attention of the board of directors can I be found culpable in the crime? 2nd if restitution is made can a civil trial and all that goes along with the crime of embezzlement be avoided?

What are the laws here in WA?

Thank you for any help or insight you can provide.
 


FlyingRon

Senior Member
If you are an officer of the company sitting on the information would certainly be actionable malfeasance. The board needs to decide on their action. Yes, they can forgo civil action if restitution is made.

Restitution isn't going to make much difference if criminal charges come into play.
 

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