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Embezzlement

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platinumwarlock

Guest
Michigan

I am employed at a very small C Corporation. The president has been using company money as a personal credit account. If he sees something he wants for personal use, he uses the company credit card. His account for this purpose is in the thousands of dollars. Even if he intends to pay this back to the company, is this embezzlement?
I am particularly angry about this because our IRAs are suspended because of lack of sales. For over a year, I was having money taken out of my paycheck to go into my IRA. I eventually found out that the money was not going in my IRA, it was being "held" (on paper anyway, more accurately it was being used for company debt). I am now owed this money, with no sign of ever getting it back, either in cash or in my IRA. Is this a crime? Even if it isn't, isn't it particularly shameful that the president uses company money for himself and yet doesn't pay back employee IRA money?

Any advice is greatly appreciated.
 


JETX

Senior Member
Q1) "I am employed at a very small C Corporation. The president has been using company money as a personal credit account. If he sees something he wants for personal use, he uses the company credit card. His account for this purpose is in the thousands of dollars. Even if he intends to pay this back to the company, is this embezzlement?"
A1) Possibly. It depends on his rights as an officer of the corporation and his liability to the board or directors. THEY are the ones that are charged with the responsibility of the corporate assets.

Q2) "I am particularly angry about this because our IRAs are suspended because of lack of sales. For over a year, I was having money taken out of my paycheck to go into my IRA. I eventually found out that the money was not going in my IRA, it was being "held" (on paper anyway, more accurately it was being used for company debt). I am now owed this money, with no sign of ever getting it back, either in cash or in my IRA. Is this a crime?"
A2) Assuming that these are YOUR funds (deducted from pay), then you need to contact your states labor board, since your pay cannot be withheld without your permission. If this is as you describe, in essence, you are loaning YOUR money to the company. However, if this is company money that was scheduled to be distributed to you, depending on the internal rules regarding IRA funding, you may not have an entitlement to the money.

Q3) "Even if it isn't, isn't it particularly shameful that the president uses company money for himself and yet doesn't pay back employee IRA money?"
A3) Yes. And a sign that you need to start finding another job.
 

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