Embezzlement is one of the severest fiduciary crimes that a person who has ownership in a company, or who works for a company, can commit. As with all crimes involving a breach of fiduciary dutysuch as this, embezzlement is a crime of moral turpitude and if committed or alleged, it can breach and violate the trust of the business owner; other business owners if you are a part owner,or other partners, if it is an LLC or LLP.
If theembezzlementis proven to be true, it can alsoseverelyharm the company’s clients or customers. Unlike other negligentactivities, which may cause a companyto falter, embezzlement is a premeditated act initiated to directly deprive the company ofmoney. And, anyone who has been charged with acrime of embezzlement will quickly understand exactly how difficult it willbe to defend this allegation as the chargesand penalties canbe devastating. For this reason alone, if you have been accused of a crime of embezzlement,and if you are innocent, you should contact a business litigation attorney who specializes incriminal consequences and criminal defense immediately so that youcanprotect your reputation. If you are a business owner and if someonehasembezzled money from your company, it is imperative that you contact a business litigation attorney immediately so that they can file suit against the person who breached the company’s trust and to try to recover the funds that were taken from a company thattrusted thatperson with company funds.
What is Embezzlement?
In simplestterms, embezzlement is the act of harming a company by using corporate funds for personal gain. This usually occurs when a person has been placed in a position of fiscal responsibility and has direct access to the corporate funds. It may involve writing checks, wire transfers, or diverting money or property for personal use.
How Is It Detected?
In most instances, embezzlement is discovered during an accounting audit. However, just because an auditor finds improper or irregular accountingpractices within the company does not necessarily mean that anyone is guilty of embezzlement. It may be a sign that errors exist and need to be corrected.
Partnership Dissolution
Partnerships are similar to marriages. No one knows how it will turn out in the end. As a result, there have been numerous instances where partners have accused each other of maliciously attempting to destroy the business from sheer incompetence to crimes such as embezzlement and fraud. Business litigation attorneys can assist with not only the defense of these groundless allegations but also with the dissolution of the business. It is vital that you contact experienced business litigation attorneys early in this process to mitigate damage to your reputation and emotionalwell-being.
Goldstein & Scopellite, PC is located in Dallas, Texas and was established in 2002. For more information, see our local listing in D Magazine.
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