Discovered an Embezzler

[>Charlotte<]

Tithulta, CdwJava is extremely knowledgeable about California law so his doubt that you must report the suspected embezzlement is probably correct. Just to satisfy my own curiosity, however, I searched the California Code. I couldn't find anything except what I have pasted below. This seems to pertain only to licensed CPAs, and whether you and the former bookkeeper are licensed wasn't stated in your post.

5063. (a) A licensee shall report to the board...of the occurrence of any of the following events...within 30 days of the date the licensee has knowledge of these events:
(1) The conviction of the licensee of any of the following:
(C) Any crime involving theft, embezzlement, misappropriation of funds or property, breach of a fiduciary responsibility, or the preparation, publication, or dissemination of false, fraudulent, or materially misleading financial statements, reports, or information.

Now, that clearly indicates that if a CPA is convicted of embezzlement he must notify the licensing board within thirty days. Further down in the text it states:

(f) Nothing in this section shall impose a duty upon any licensee to report to the board the occurrence of any of the events set forth...either by or against any other licensee.

If this is applicable to you, that seems to let you off the hook. Of course, the Califoria Code is vast and there may be other statutes that address this issue more explicity with regard to your problem.

I agree that your employer's reluctance to take any action against the former bookkeeper seems suspicious, and if they need a scapegoat they may very well try to use you.

Whatever happens, good luck. I'm sorry you lost your job, but if the company is that fiscally irresponsible you might be better off.

 

[tithulta]

Thanks

Thanks for all of the advice. I am not sad about not having to be involved, anymore. I have spoken with an attorney, filed for unemployment, and have saved all of the evidence that I need to prove exactly who did what. I have covered my own arse, and, if the *******s are smart, they will leave me well enough alone.

Though I am a good bookkeeper, I am not licensed, nor have I ever had any formal training. (My education has nothing to do with business or finances.) I have simply been involved in the small business environment enough to know how to do all of this.

I think that lets me off the hook, for the most part. The scheme is somewhat complicated, especially to the layman, so, I will stick with the story that the reason I did not report it was because there was not enough evidence because, while there is missing cash, I still did not see anyone take it.

 

[Dannno50]

After leaving a company in simalar fashion and now four years self employed, I will say you should walk away with your head held high! Guess who knows your not stupid now.
Good Luck. There is a great demand for people who pay attention. Put it on your resume,might save you trouble later.