Confrontation Is Not the Way to Deal with a Thieving Employee

What to Do When You’ve Discovered an Embezzlement

Editorial
by Jim Du Molin

Now, finally, what to do when you think you are being embezzled by an employee? For reasons I do not want to discuss in a public forum, it is important that you DO NOT IMMEDIATELY CONFRONT THE SUSPECT with your concerns or evidence.

Step back, take a deep breath, and call your accountant. Discuss your concerns. Set up a meeting to review what you have found. If your accountant believes there is enough smoke to proceed, do an audit. But do it privately, after hours. Do not let the suspect or ANY other employees know that you have a concern.

Your main goal is not to be accused by the suspect of defamation! This is a common tactic of embezzlers. Once you have proof of the problem, you have two choices. Your path will depend on the size of the embezzlement. In either case retain an attorney to review your options.

If the amount is under $10,000, terminate the employee without getting into ANY discussion of your proof or suspicions. If you are in an “At Will” state, you don’t have to even give a reason. Just say that you “don’t feel the two of you are on the same page” and you are letting him or her go. Again, consult your attorney.

I know that this advice will frustrate many of you reading this. Yes, you may end up paying unemployment costs, but in the long run, it is worth it. The reality is that this is the least expensive, least stressful and least time-consuming approach to the problem. I have been through this many times with many doctors who wanted to crucify the suspect and run him out of town on a rail all the way to the penitentiary. The reality of that happening is nil, and your chances of getting any money back are less than 10%.

I know it’s hard advice to hear… but it is the most valuable tip I can give you.