ex-employee fraud with company credit card

[sdlegal]

What is the name of your state (only U.S. law)? CA

Recently a former employee was discovered to have charged numerous personal items to a company credit card and company eBay account / paypal, going back almost a year. Records of all the transactions have been printed. The owner has tried to recover the funds but the employee refused to return the money, claiming that he paid it back in cash by putting it in a cash drawer. However there is no written evidence or receipt for returned payment and the ex-employee has a history of lying. Further, video camera surveillance shows no time when he put cash back into the drawer.

The ex-employee did admit to one purchase and claimed he would make the return payment (as written in a text message) but never did.

Is this enough evidence to support a small claim against him? We are talking about several thousand dollars of purchases made over time.

 

[tranquility]

Of course it would. As to the "cash drawer" defense, how can that be? Don't you guys have some type of reconciliation process done each day? It should be quite clear if a cash drawer is over by any related amount under proper accounting procedures.

 

[Ohiogal]

Why weren't criminal charges pursued?

 

[sdlegal]

The cash drawer is accounted for, so yes, there is no record there. His defense is null and void.

Yes, will be pursing criminal charges. Start with a police report?

What evidence would be required in court, want to ensure our case is solid.

 

[tranquility]

Let the police do the heavy lifting if they will. Restitution can be a part of a criminal conviction.

As to proof if the police don't go through the steps, no one can guess without the facts. What do YOU think you need to use for proof.

 

[sdlegal]

Right, have all the documentation prepared and am filing a police report. Will report back what happened.

 

[swalsh411]

You should also closely examine your internal controls to determine how this was allowed to happen. It should not have gone on for a year.

 

[sdlegal]

Yes, that has been done, thank you.

In thinking about this more, we have decided to first seek repayment via a demand letter with the threat of criminal prosecution if he does not repay within 7 days. We'd like to put in the letter the full scope of potential consequences for his actions. Can you post some of the laws that would be applicable and the maximum punishment allowable under said laws?

 

[swalsh411]

I wouldn't recommend that. I would simply state you will file a police report. You don't make the call on whether he is charged criminally after you file a report.

P.S. You won't get your money back if he's in prison.

 

[sdlegal]

Here's an example of what I mean:

"If you do not repay the full amount within 7 days, we will file a police report. Should they decide to prosecute you criminally, you could face <fill in potential punishment here>"

What's the harm in that? Collection and attorney's letters do this all the time, they speculate on what COULD happen. It forces the guilty party to think about the consequences of their actions, which they may not even be aware of unless they know the law.