San Diego Misappropriation of Funds and Embezzlement Attorney
The misappropriation of funds is often more commonly referred to as “embezzlement.” Here in California, it is a crime for anyone to unlawfully take, use or appropriate the property of another business or party which has been entrusted to their care.
In a business setting, a fiduciary relationship must exist where one of the parties has entrusted funds, property or assets to another person who has fraudulently misappropriated those assets in violation of that trust. This breach of fiduciary duty and unfair business practice is the basis for many business disputes and civil lawsuits.
If you believe your interests have been harmed by the misappropriation of funds or embezzlement the experienced San Diego misappropriation of funds and embezzlement attorneys at the Watkins Firm can help.
What are some Examples of Misappropriation of Funds or Embezzlement?
Misappropriation of funds and/or embezzlement can take many forms and may be a may be a long term and systematic strategy or a one-time occurrence.
Perhaps a business partner, shareholder, or fellow member of an LLC or corporate officer or employee has inappropriately taken company money or misused assets for their own personal interests. It can be as simple as a cashier or manager taking money out of a cash drawer.
It may be as complex as a bookkeeper, accountant, executive or other employee setting up fictitious entities and creating false invoices in order to siphon company funds.
One of the most common forms of misappropriation of funds or embezzlement is conducted by an employee, owner or officer who had access to your business monies and/or books. They may alter the payee on checks or invoices or some other document in order to receive direct payment to their own accounts or entity.
Other types of misappropriation or embezzlement include:
- Submitting false or inflated claims for business expenses
- The receipt of gifts or fees from vendors of the company / kickbacks
- Commingling or the payment of personal obligations through company funds
- Falsification or modification of accounting or payroll records
- The payment of family or friends for work which was not performed
Listen to our Recent Sound Business Insights Podcast:
Episode 14 – Shareholders’ Rights and Disputes”
Company Assets Can Also Be Misappropriated
It may surprise you to learn that the misappropriation of company assets is a civil and potentially criminal violation. The mishandling of property, inventory, IT equipment and other assets could have an impact on the success of the company. Company assets are, by their very nature, the property of the company and all of it’s partners, members or shareholders. The loss of value or missed opportunity based upon the misappropriation of company assets could also result in an impact on the value of these investor’s interests.
There should be specific controls in your organization to track and monitor all assets from furnishings to electronic equipment, from assets as large as vehicles to small but valuable components or supplies which may be attractive targets.
Why do you need an Experienced San Diego Misappropriation of Funds or Embezzlement Lawyer?
Many business owners and other parties are disappointed by the lack of interest by law enforcement in pursuing these cases. Frankly, they require extensive legal skill to prove. Misappropriation of funds or embezzlement often requires extensive legal investigation and forensic accounting in order to trace sources of funds and the fraudulent activities of the perpetrator to cover their actions.
Simply reviewing the books will not suffice. Documents and book entries themselves are often quite distorted. The perpetrator may simply claim incompetence. There may be extensive costs associated with proving the facts of the scheme and the relationship of those who participated within it.
In many cases, the corporate entities, doctor’s offices and other businesses which are the victims of embezzlement or misappropriation of funds may be embarrassed by what has happened.
The Watkins Firm understands every aspect of these issues as well as the elements of a misappropriation of funds or embezzlement case. We employ a unique approach which is designed to identify the parties and their actions while seeking restitution and a resolution which reflects our own client’s goals and objectives.
Recover the Assets or Pursue a Civil Action for Compensation for the Misappropriation or Embezzlement
Once the misappropriation of funds or embezzlement is discovered, and sufficient documentation and evidence is gathered the next steps are to demand the immediate return of the funds or assets. A civil lawsuit may be brought seeking restitution for the misappropriated assets and in many case additional substantial punitive damages as a form of punishment and to discourage others from doing so in the future.
Contact Proven San Diego Misappropriation of Funds and Embezzlement Lawyers
If someone in your business has been placed in a position of trust and misappropriates or embezzles funds we can put a stop to it, and work to recover monetary damages and other restitution based upon what has happened to your business.
Learn more about how the Watkins Firm can help with misappropriation of funds and embezzlement. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.