Florida – October 26, 2022
When a business owner suspects an employee or partner has misappropriated funds from a company, they may need to speak with a business lawyer to find out what actions to take. An experienced business law attorney will guide clients toward addressing the theft and stabilizing a company that may be subjected to financial ruin due to the negative action of embezzlement.
Potential actions against the misappropriation of funds.
Certain elements must be present before legal action can be initiated. The individual who has been suspected of misappropriation of funds, theft, or embezzlement was acting in a position of trust or within their fiduciary duty to the business. The accused party must have acquired funds or assets through the business relationship. The accused party has taken or received misappropriated assets or funds.
The action of theft must be proven for successful litigation outcomes. This can be difficult to prove in many cases unless the thieving party confesses. Often a company’s financial documents may not make It clear that business theft has occurred if the person is in a position of trust, they can make efforts to hide this fact. Proving financial loss at the hands of a trusted employee or partner may be difficult without collecting financial documents from outside entities such as banks and investment companies. An experienced lawyer can assist with these activities by collaborating with accountants to go over company books and see how vendors are being paid and identify any discrepancies. Inventory can also be monitored to investigate drastic shifts in inventory stock. A close review of credits provided to customers should be undertaken as well as this is a common strategy of embezzlers to misappropriate corporate funds by accepting full payment on invoices . It is often beneficial to review all credits provided to customers over the suspected period. One of the most common strategies for embezzling or misappropriating corporate funds is to accept full payment on an invoice, issue a “credit” and pocketing the amount of the credit while altering accompanying documentation to “cook the books.”
It is not usually prudent to confront someone directly whom you suspect of misappropriation or embezzlement. This is another reason to contact an experienced business attorney. It is important to establish many facts in the situation and often to conduct extensive surveillance and/or forensic accounting. These important steps must be conducted in a thorough manner often without making the suspected target aware of them.
Hire a business law attorney.
Business owners should seek the assistance of an experienced business attorney when attempting to identify corporate theft or misappropriation of funds. Attorneys at Legal Counsel, P.A. can build a case against a guilty party to correct corporate theft in Florida.
Legal Counsel, P.A.
189 S. Orange Ave., Ste. 1800
Orlando, Florida 32801
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