Are you searching for information on how to handle misappropriation of funds or assets in San Diego or Southern California?  What does it take to prove misappropriation? What action(s) should you take if you believe a business partner, shareholder, member, executive, employee, contractor or supplier has misappropriated you company’s assets or money?

The Elements of a Successful Misappropriation Case

One of the important elements of how to handle misappropriation of funds or assets at your company is to be able to recognize the important elements of a misappropriation civil case.  These include but are not limited to:

  • The person who misappropriated funds or assets must have used their relationship with your company in order to do so.
  • The funds or assets must be in the possession of the perpetrator or have been transferred through them to another individual or business entity.
  • The suspected misappropriation must have been accomplished by someone who has breached their fiduciary duty or position of trust within your business.
  • Intent actually plays a significant role in a successful civil case for the misappropriation of funds or assets. There may need to be a confession or the accumulation of substantial evidence.  This is why you need one of the experienced business misappropriation attorneys at the Watkins Firm.

Important Steps When Determining How to Handle Misappropriation of Funds or Assets

What are some of the important actions you should consider when determining how to handle misappropriation of funds or assets in your company?  The first and most important step is to develop a chronology of events supported by substantial documentation.  One of the first sources to check is the company’s books.  Look for inconsistencies, even if they seem minor.  “Off by a penny, off by a million dollars.”  This is an old saying we live by at the Watkins Firm.  We work with forensic accounting experts to examine the books to seek supporting inconsistencies, illegitimate vendors or ghost employees.  Our team can compare important documentation from internal expense reports, company credit card statements and bank accounts to entries in the company’s ledger.

Another issue to consider is any inconsistency in inventory.  There should be a system to carefully manage incoming and outgoing inventory as well as consistent checks of the existing inventory itself.  Investigate inconsistencies, changes in stock on hand or “damaged” discarded records.

Another important issue to consider when facing the issue of how to handle misappropriation of funds or assets is a common scheme associated with customer or vendor credits.  In this scenario, the fiduciary or trusted individual collects full payment on an invoice but issues a fictitious credit while pocketing the difference.  This type of scheme can also be applied to kick-backs from suppliers as well.

Ask Your Experienced Watkins Firm Attorney How to Handle Misappropriation of Funds or Assets

If you have noticed inconsistencies or other apparently concerning evidence or behaviors it is important to seek the advice and counsel of your experienced Watkins Firm attorney to learn more about how to handle misappropriation of funds or assets.  It is most often the best strategy not to directly accuse or confront the suspected perpetrator.

The proven misappropriation and embezzlement attorneys at the Watkins Firm will help you to develop a strategy or investigation which develops substantiating documentation, surveillance and evidence to support your case without tipping of the suspected perpetrator.  Our attorneys can help track the money or assets and work to ensure just compensation, the return of assets and compensatory damages for what you have been forced to endure.

If you are concerned about the potential misappropriation of funds or assets including embezzlement we invite you to review our podcast Episode 25 – Unfair Business Practice Overview, the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.

Contact a Business Law Or Real Estate Attorney Today

To set up a free, no-obligation consultation with our knowledgeable San Diego business lawyers, call us at 858-535-1511 or contact us online.