Legal Advisor – Protect from Embezzlement, Fraud, Scams and Theft in the Workplace

42% of theft occurs in companies with less than 100 employees.

* Association of Certified Fraud Examiners

As a business owner you want to believe that the people you hire are honest, and most are. That said, you must be vigilant concerning theft

from your own employees regardless of the size of your business or the loyalty of employees and length of service, some employees are dishonest or make honest bookkeeping mistakes.

Theft may be in actual money or company owned assets. Either way it costs YOU money.

Examples:

A. One very distinguished and successful attorney had a bookkeeper who embezzled over $250,000.00 from his client trust account.

B. A multi-billion dollar publicly traded corporation had an employee in inventory/sales embezzle over $6,000,000.00 in conjunction with an outside “vendor” using fake invoices.

I know, I was tasked with putting together the paper trail of their scheme for the police and FBI just before their arrest.

Proactive anti-theft steps you can take include:

  • Establish a procedure of checks and balances, with more than one person performing all accounting bookkeeping deposits and check writing tasks.
  • Hire outside accountants and perform impromptu audits.
  • Be vigilant and frequently take a good look at your books, actual receipts, invoices, and checks.
  • Trace your inputted data. Is the person inputting data the same as the one cutting the checks?
  • Create indelible footprints in your financial system to give you a clear audit trail.
  • For retailers, establish strict cash register procedures and monitor them.
  • Establish a system of inventory control and actively review the records.
Remember embezzlement happens in privately held companies as well as publicly traded corporations. Periodically have your financial procedures reviewed by an experienced business attorney.

 

Liat Cohen, Esq.
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Do you have a similar legal problem?

Liat Cohen has been practicing law in the Los Angeles Area for over 25 years.  If you have experienced a similar issue, feel free to contact her for a free initial consultation to discuss how she can help you solve your legal problems.

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    2020-02-17T16:10:19-08:00December 11th, 2018|