Alex What to do if an employee embezzles?
What to Do If an Employee Embezzles? Embezzlement is a very specific type of fraud, and most cases involve taking money from an employer. In legal terms, embezzlement is the taking of goods, whether money, merchandise or information, that has been entrusted to you or your employer for your use or gain.
Can a company garnish an employee for embezzlement?
The Employee Retirement Income Security Act (“ERISA”), as construed by the courts, prohibits any type of garnishment, attachment, or constructive trust remedy by an employer with respect to pension and profit-sharing plans covered by ERISA, even in cases involving a terminated employee’s embezzlement against the employer.
Is it a crime to embezzle money from someone?
However, embezzlement is a crime; and while a case can take several years to prosecute in court — and you may never get the money back, even with a restitution order — choosing to press charges can send a message that you’re serious about theft and help you get closure to a difficult situation.
Which is an example of embezzlement in a small business?
One awful day you wake up and realize an employee you trusted has been embezzling from your company. It’s one of the most devastating things to happen to a small business owner. Examples of embezzlement abound and there’s no shortage of ways that employees steal. The goal of this article is to help you spot the warning signs.
Do you call the police for embezzlement or theft?
Many employers, especially small businesses, don’t report embezzlement fraud and employee theft. But that is a mistake. If you’re talking about a few missing supplies worth $20, it doesn’t warrant calling in law enforcement. However, you should report all serious embezzlement and employee theft situations involving high value to the police.
Is there a way to prosecute an embezzlement case?
To successfully prosecute embezzlement, you need to have an airtight case; without solid proof, the case may never make it to court or you can be subject to a civil countersuit from the employee. Although the FBI makes more than 20,000 arrests for embezzlement each year, according to “Inc.” magazine, very few small business actually press charges.
What does it mean to embezzle money from an employer?
Embezzlement is a very specific type of fraud, and most cases involve taking money from an employer. In legal terms, embezzlement is the taking of goods, whether money, merchandise or information, that has been entrusted to you or your employer for your use or gain.
What happens if you make a false accusation of embezzlement?
Embezzlement is a serious accusation, and making a false assumption could land you in legal trouble. When you suspect embezzlement, consult with an attorney and law enforcement to get specific advice on how to proceed. Embezzlement is treated like any other crime of theft, and there are no specific laws regarding employee theft.