Discovered an Embezzler

[tithulta]

What is the name of your state? California

I have discovered someone embezzling from my company. This person was once the bookkeeper, but now performs another function at the company.

I now have all of the documentation and deposit slips that show that this person has been hiding checks in the quickbooks check register under american express deposits (splitting the deposit), shorting each amex deposit the amount of each check (so the amex lines up with the bank statement, and the check report prints out the correct check payments), then inserting that check into the daily cash sales deposit while removing the cash. She covered this up by turning in a manufactured deposit slip that stated all cash was deposited, but the deposit slip the bank had on file included checks. Of course, each deposit slip was for the same amount. She had been taking tens of thousands of dollars in cash!

My employer thinks he needs more proof, but I have the manufactured deposits slips and can demonstrate how the cash was removed to the tune of over $100,000.00 over the course of 5 years. I have a serious problem with working side by side with someone who has done this.

What are my obligations as far as reporting this to authorities?

The owner of my company seems very hesitant to pursue this, and I am eager to see this resolved. Is my owner obligated to report this?

If I take this evidence to the police, are they going to make an arrest?

Basically, I am sitting on what I feel is proof. I have card blanch to proceed how I see fit, since I manage the company, but the owner seems indifferent.

What is the best way to proceed?

Would you recommend asking the employee about the manufactured deposit slips?

I don't want to put myself in an actionable position.

Any advice is welcome.

 

[CavemanLawyer]

Legally you are required to report any felony, but realistically people in a situation like yours would likely never be charged. If this owner is so indifferent to losing ~$100,000 than I'm afraid to say I suspect he might be in on it. Just because the outward appearance is that he is the one being ripped off doesn't mean he's not involved. Embezzlements like this can be a way for an owner of a company to defraud the IRS. In any case, if you've got clear evidence of this than report it. If you are acting in good faith and you've got real evidence of this than you can't be held liable for any charges or inconvenience that it brings the company. If you are an at will employee than you could potentially lose your job though.

 

[msiron]

It's called Cart Blanc. Anyway CL may be onto to something concerning the owner & the embezzler. They could have an outside relationship you are unaware of.

Since you said something to the owner and he is aware you know and have proof (copy all proof you have) if anything happens he will be looking at you, and probably fire you. Try to secure other employment before you blow-the-whistle.

 

[las365]

Actually, as long as we are correcting people, it's "cart blanche," i.e. unrestricted power to act at one's own discretion; unconditional authority. Few of us really have it.

 

[PJ Weber]

It's Carte Blanche

 

[las365]

Heh. This could go on and on...

 

[PJ Weber]

My employer thinks he needs more proof, but I have the manufactured deposits slips and can demonstrate how the cash was removed to the tune of over $100,000.00 over the course of 5 years. I have a serious problem with working side by side with someone who has done this.

Basically, I am sitting on what I feel is proof.

If you believe the facts are undeniable contact the FBI immediately, not the police

Say nothing to the person involved ! !

With AMEX involved it could get into Interstate Fraud

 

[CraigFL]

But before you contact the FBI immediately, look for another job since you won't be working at that place any more....

 

[>Charlotte<]

If, as CavemanLawyer stated, OP is legally required to report a felony, would he be covered by any "whistle-blower" protection, if California does have such a law? My first thought was that it might not be applicable because he's reporting a fellow employee as opposed to his employer (and I'm not even sure that's how whistle-blower laws work), but if he's required to report this wouldn't that meet the requirements?

Again, I know almost nothing about such laws or if Calilfornia law provides such protection, but the warning about losing his job made me wonder.

 

[CdwJava]

My employer thinks he needs more proof, but I have the manufactured deposits slips and can demonstrate how the cash was removed to the tune of over $100,000.00 over the course of 5 years. I have a serious problem with working side by side with someone who has done this.

What are my obligations as far as reporting this to authorities?

If your boss does not report it, you may be left with few options. You do not HAVE to call the police, but I can guarantee that if the offense is not reported you could end up getting swept up in this somehow as a co-conspirator of some kind. Your boss might also be seen as complicit if he refuses to take action.

Is your boss the owner of the company? If not, then you may need to go over his head. Someone who might actually be the victim should be notified - partly to protect your own tail.

The owner of my company seems very hesitant to pursue this, and I am eager to see this resolved. Is my owner obligated to report this?

He should. Otherwise, he's risks becoming a participant in a criminal enterprise.

If I take this evidence to the police, are they going to make an arrest?

Probably not. What they will do is investigate and then submit their findings to the DA for further review and, perhaps, an arrest warrant.

Basically, I am sitting on what I feel is proof. I have card blanch to proceed how I see fit, since I manage the company, but the owner seems indifferent.

What is the best way to proceed?

If you want to protect your behind, report it. You may not be employed next week, but I can see how this might blow up in your face if you leave it just between two or three of you ... things can sometimes get twisted as time goes on and it might look like YOU were this guy's partner.


- Carl

 

[tithulta]

Finding another job

I presented my employer with all of the evidence. It is concrete. I have fake deposit slips, the original deposit slips, the Quickbooks check register where the checks are hidden in the American Express deposits, and the correct set of books (that I did) that show we are $100,000.00 short in cash.

It is clear to me that the fake deposit slips are the instrument of conversion, and that this is embezzlement. The handwriting on the deposit slips are clearly that of the old bookkeeper. Clearly, the old bookkeeper was the one removing the cash and replacing with legitimate checks that were not being accounted for properly.

Whether she was giving the cash to my employer, the owner, I have no way of knowing. The plot thickens when I discover that the old bookkeeper has a prior conviction to embezzling over $70,000.00 with her previous employer. The court documents reveal that she had been writing checks to a DBA account out of a trust fund that she was helping to manage.

When I presented all of this to my employer, the owner of my company, he became angry, called me "unobjective" and said that "you have no idea what you are talking about." It would seem that the suspicions here about the owner being involved could be correct.

I had plans to leave the country for while, but I may have to reconsider.

Should I really go to the FBI?

Should I cancel plans to leave the country until this is resolved?

Would it be risky to simply resign and leave it all alone?

 

[CdwJava]

I presented my employer with all of the evidence. It is concrete. I have fake deposit slips, the original deposit slips, the Quickbooks check register where the checks are hidden in the American Express deposits, and the correct set of books (that I did) that show we are $100,000.00 short in cash.

It is clear to me that the fake deposit slips are the instrument of conversion, and that this is embezzlement. The handwriting on the deposit slips are clearly that of the old bookkeeper. Clearly, the old bookkeeper was the one removing the cash and replacing with legitimate checks that were not being accounted for properly.

Whether she was giving the cash to my employer, the owner, I have no way of knowing. The plot thickens when I discover that the old bookkeeper has a prior conviction to embezzling over $70,000.00 with her previous employer. The court documents reveal that she had been writing checks to a DBA account out of a trust fund that she was helping to manage.

There is a difference between what common sense says is happening and what the law can show. If an alternative explanation can be made to confuse a jury it weakens the case. Only the police and the DA can make the determination ... or the FBI and the US Attorney.

When I presented all of this to my employer, the owner of my company, he became angry, called me "unobjective" and said that "you have no idea what you are talking about." It would seem that the suspicions here about the owner being involved could be correct.

He may have an incentive to be unconcerned. if the company is publicly traded, or he has partners, this sort of scandal could cause serious problems.

Should I really go to the FBI?

You should consider it. But, at least start by going to the police and see where that goes.

Should I cancel plans to leave the country until this is resolved?

Up to you ... but, it might look suspicious of someone wants to point fingers at you.

Would it be risky to simply resign and leave it all alone?

Probably, yes.

- Carl

 

[tithulta]

all she wrote

and today they fired me

should I just walk away and do nothing? this would be my favorite solution

 

[>Charlotte<]

If it was a felony and you are required to report a felony about which you have knowledge, do so. It will CYA and you have nothing to lose. You might want to stick around to ascertain whether you are required to report it. I can't answer that one.

 

[CdwJava]

No law I am aware of in CA makes it a legal requirement to report felony theft or embezzlement. However, failing to report it could give someone time to make you look complicit in the whole affair. You might consider consulting an attorney to see what he or she has to say about your exposure if this whole thing goes south on you.

If there IS a conspiracy, YOU could become a patsy.

- Carl