Accused of Rigging the Price for a Purchase Made from My Employer

My question involves criminal law for the state of: Arkansas.

For almost 3 years, I have been the MGR of a retail department. During this time, I have had SEVERAL Assistant Managers, and they have almost always given me DIRECT authority on pricing our clearance items. I was told (again, like several times before) about 2 months ago: "Get those out of here...make some deals. We can't post a sign advertising the clearance price (because it is not "approved by corporate") but make some deals...price override them...get them out of here."

About 1 month ago, my boss's boss inspected our area, saw the old merchandise, and told my fellow MGR (same level as me) pretty much the exact same thing: "make some deals...get them sold." So we (both equal-level MGR's over the same area) started offering 50% off to customers who seemed interested. Gradually we increased the discount every 2 weeks, until we reached a flat-price per item which was about 75% off the average price.

This current pricing is almost as low as the discount approved by my boss's boss about 1 year ago when a local competitor bought $13,000/old-merchandise for about $2,400.

This is where my story goes horribly wrong, and it gets complicated so I will tell it "play by play":

1. At the low pricing WE (MGR's) agreed to be appropriate per our boss's and his boss's instructions,....I started getting interested in buying the merchandise for resale. Now it has been explained to me that this is an "ethical conflict of interest" but that is not a criminal charge, so I do not wish to discuss that in this forum.

2. I told my equal-MGR that I can't decide on pricing anymore because I am starting to consider buying some merchandise at the clearance prices that are appropriate soon.

3. My equal-MGR said we are actually overdue for another price-drop because our boss wants this merchandise "gone." I said "I can't decide because I am wanting it...so it's up to you." (I recused myself)

4. My equal-MGR decided on the most recent price-drop, and I said I am going to "buy up some clearance merchandise on payday."

5. Days later on payday, I went to an Assistant Manager (who also told us in the past to "make deals" and gave us authority to set pricing at whatever level is necessary to sell outdated merchandise). I told this Assistant Manager "I want to buy up some clearance merchandise and I need approval for the price-overrides". He said "It's clearance? Ok, go ahead", told me to use his approval code, and never even asked about the price (because the "price" of our clearance has ALWAYS been "whatever people will pay for it...make some deals").

6. After a week, I had found buyers for the clearance merchandise I had purchased. So I bought more clearance merchandise, but this time my equal-MGR was on duty (on my DAY OFF from work) and this equal-MGR, who set the current pricing after I recused myself, approved the price-overrides and sold me the clearance merchandise.

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7. After purchasing this clearance from the on-duty department supervisor (on my DAY OFF), I left the store and received a text from someone at the store that "an investigation" had started about me "loading up merchandise in my car."

8. I called and insisted to speak to ANYONE who would say more than "there is an investigation on-going and I can't say anything." So I went through the channels: Assistant Manager >> Asset protection person >> Asset protection MGR >> District Asset Protection MGR (who is conveniently located in our store). The District AP MGR (DAPM) said "I'm aware that there is an investigation that just started...if you want to come, you can give a statement and help clear up some things."

9. I go back up to the store on my day off and I get questioned for over an hour about: "Why was that merchandise price-over-ride'd" "Who approved such major overrides?...that much of an override should come straight from this office" "Why are you setting your own price on merchandise?"

10. I explained all fact in the order above. I offered to voluntarily return the merchandise I just bought if there is ANY appearance of "unethical behavior" (which was his favorite phrase). He would not authorize me to return the merchandise, but told me that selling it was "unethical behavior - conflict of interest because it competes with this store".

11. So I removed any advertising I had posted, voluntarily chose to "cease & desist" selling after being told it was "unethical", and have been waiting for a response from the DAPM.

12. After about a week, I went to the DAPM's office and requested an update. He said he had to consult with corporate because the "ethics policies on conflicts of interest are being updated right now". I asked if that is the only issue at hand because last week he was investigating to find out if i discounted the merchandise FOR MY OWN INTEREST.

13. He said, basically: "The ethical issue is not the only issue. I also have to look at 'lost profits' on the merchandise you bought." I asked if that means that they may be pressing any charges against me, and he said "I can't say because the investigation is still on-going."

14. I reminded him that I volunteered last week to return the clearance merchandise. This time I stressed my personal issue that "I bought this merchandise to sell and come out ahead" but right now I have $____ invested in this merchandise that I am not allowed to sell....can I return it now, because I need my money back if I should not be re-selling it." He again said, "I can't really make a decision on that because there is an investigation going on."


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If you are still reading this and haven't fallen asleep (because I know I can't sleep..):

In summary,

1) I don't care if I get fired for "unethical competition behavior" that I hadn't even considered....because I am WELL-QUALIFIED for much better jobs. I have just been enjoying the nice hours and enjoyed the work in this job, so my "quality of work-life" was worth being paid less than I am qualified for."

2) I am worried that they are going to attempt to press some kind of "fraud" or "theft" charges against me.
Please remember:
-WE have always been told to "make deals" by our bosses, and even their boss;
-I recused myself from price changes when I realized the price was tempting to me;
-I NEVER "rang up" my own merchandise, but I did provide my boss's approval code to the cashier (with the boss's approval)
-The price-drops WE approved and the most recent price-drop by the other equal-MGR (after I recused myself) are NOT as low as last year when our boss APPROVED a sale of almost $13000 merchandise (at about 75% off) STRAIGHT TO A LOCAL DIRECT COMPETITOR!!!

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So what can they do to me (besides anything up to termination because of "unethical competition")? I am planning on leaving anyway after this fiasco (ending 7 years with this employer, with almost 3years in this position and 3 years in other MGR positions). But I don't want to have bogus charges pressed against me that will further ruin my reputation and ruin my future career potential. Ironically, I got a phone call from a competing company and promised an interview for Store Manager on the same afternoon that I made my "questionable purchase" on my day off from the ON-DUTY equal-MGR.

On a side note, this is the same store where an Assistant Manager told me the other day: "If one of your employees refuses to stay late, we can't write them up but we can give them only 16hours from now on...and when they leave, we can hire employees that WILL stay late when we need them to." This is only ONE of MILLIONS of stories I can tell...I know how this company works.

I just know they will try to "make an example out of me" even though I followed every rule I knew about, and the only rule I didn't know about was the "unethical competition". I think they are going to say that I (or we) rigged the price for my purchasing. I and the other equal-level MGR over the same dept were just setting the prices at "selling points" EXACTLY as we have both been instructed to do for years. ...and our last major clearance sale will prove precedent.

So if they try to charge me, what will they try to charge me with? What kind of lawyer specializes in retail-practice crime defense? Should I get a lawyer now because I suspect they are attempting to find a way to charge me with a crime? It's been over a week since the investigation started...this is taking too long for them to "decide" and I am losing too much sleep over their "investigation of lost profits." If it tells you anything, I am posting this at 2:17am..I got up at 6:00am yesterday and I have to get up in about 3.5 hours for work again....and spend another day at work wondering if I will be escorted out, humiliated, on bogus trumped-up charges??

Thanks in advance,

--stressed in Arkansas.

Unfortunately, you made a poor choice. Also, unfortunately its not very likely that your boss is going to back up your story (because that puts his/her job at risk). I doubt however that you are facing any potential criminal charges.

My equal-MGR (who has been here a year) and every Assistant MGR in the store (who have rotations over us and the other departments)and even the Assistant MGRs's boss should own up their own statements, "make some deals" etc etc or atleast lack of clarification if they claim "We didn't mean more than 50% off". After all, we were going by precedent when setting prices. Our "pricing" has NEVER been a problem in my 3 years until I bought from the clearance.

Also, unrelated but: My equal-MGR has been there a year because I discovered that the last equal-MGR (that I worked with for 2 years) had been defrauding the company for over $15,000 confirmed by papertrail that I found. as far as I know, he was never even disciplined "inhouse" because the "investigation was ongoing" when he found a new job 2 months after being questioned. Another employee who "benefited DIRECTLY (by receiving) from the former equal-MGR fraud" quit for another job (without discipline) and was re-hired when he quit his new job.
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This same store, 2 months ago...one of my employees caused accidental "harm" to me and customers property. By harm, I mean that there was EVERY reason to suspect I had internal damage due to the nature/severity of the accident. One of my boss's boss asked me (while inspecting the property damage), "Are you ok?". I said, still stunned/shocked: "I don't know...I just feel my adrenaline and I feel numb...all I know is I'm here and I can't feel any pain right now". He said, "OK well go ahead and take care of this, do this, etc etc," and just sent me back to working without getting a well-warranted visit for a health/injury inspection.

And of course: The employee who DIRECTLY caused the accident by operating machine incorrectly told us 20 minutes later: "__(assistant manager)___ is taking me for a drug test because of the accident. It was nice working with ya'll but I am gonna be fired because I can't pass the drugtest." And his friends tell me that he brags about never getting a writeup for the accident or fired for the drugtest. He says it is because they "settled with the customers for the damage" and don't want to file an insurance/incident claim"....so according to paperwork, this never happened. No official accident paperwork, no insurance damage paperwork, no employee discipline paperwork, and they sure didn't care to pay for me to get checked for internal injuries after an impact-type incident to my chest/abdoment that was severe enough to send me flying (off the ground) 7 or 8 feet. It was SHEER-LUCK that I was sent flying "up and back" instead of "stumbling back" because I would have been crushed if I stumbled and fell during the incident.
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But I digress....that is enough blabbering about the injustices and atrocities of this workplace because I can tell stories for years to come. I will say that one of the biggest joys of my "quality of work-life" WAS the limited interaction with upper-management. I was given direct authority over my department and would go weeks at a time without even seeing my supervisors....usually over a month without any "instruction/notes" from them. It was our area, and they trusted us to run it without supervision because we knew what had to be done and I ASSUMED (until now) that they would back us on any decision we made. It was never an issue until I bought our clearance, and now our boss's boss's boss's boss (district level) supervisor is investigating the issue.

I need to know what charges can they TRY to stick me with? This is the kind of place that will allow one person to murder and crucify another just for "it looked like you might have been speeding 2mph over the limit...I don't have a radar gun, but I perceive it so I am going to assume you are guilty because you are in the driver's seat of car that is capable....so you had opportunity and it looks like you might have done it".

Is there a limit to how long a company can "investigate" you before it is considered harrassment or other viable reason that they have to stop "investigating" you? My body is feeling the stress of duress, the aggravation of being "investigated" (accused), and the awkward work environment when everyone is avoiding me because I am "under investigation."

You can potentially be criminally charged with fraud or embezzlement or any number of criminal offenses. Not saying whether that's right or wrong or will or won't happen so please don't start a debate on the issue.

The way you handled this was all wrong and you have absolutely no leverage and are at the mercy of whatever the boss wants to do with you and whenever he wants to do it.

By the way, if you are fired for misconduct (also a distinct possibility) you are likely to be disqualified for unemployment compensation.

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Quoting adjusterjack

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You can potentially be criminally charged with fraud or embezzlement or any number of criminal offenses. Not saying whether that's right or wrong or will or won't happen so please don't start a debate on the issue.

The way you handled this was all wrong and you have absolutely no leverage and are at the mercy of whatever the boss wants to do with you and whenever he wants to do it.

By the way, if you are fired for misconduct (also a distinct possibility) you are likely to be disqualified for unemployment compensation.

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Indeed, I don't want to debate the fact here. That is what court is for. I know they can terminate me for "ethical misconduct due to competition" (which I was unaware of), but given the facts in the order I presented them, I just wanted to know what, if anything, they would likely charge me with.

Quite honestly, "competing" with them by reselling is the only thing I think I am "guilty" of. I am working to "secure/document evidence" that our clearance pricing is precedented AND statements from my direct supervisors that clearly confirm that we, department managers, have always been given "authority" to "make deals...get it gone...(by reducing to any price necessary to get the merchandise sold)."

Ironically, just securing statements that confirm that I have NOT been setting prices without authority is enough to get me fired for multiple reasons. But it is my intention to leave anyway. I simply do not want criminal charges filed against me for doing my job in the manner that WE have always been told to do it by several superiors. As stated before, our "price authority" has NEVER been an issue until I bought merchandise and now an investigation has risen to the TOP and the DAPM is giving me the impression that we never had anyone's authority.

I would simply start looking for a new job.

And glance through the yellow pages/google search local Criminal Defense Attorneys and just have a couple numbers accessible in case they call in the police to talk to you (never talk to the police without a lawyer present), or decide to file any charges.

Well, today marks the 15th day since this "investigation" started. Before anyone says it, I already know that an employer can take as long as they want to "investigate" anything...that being politely said...:

1) Hopefully their lack of "police action" (or any action) after 15 days implies that they have verified the truth...or atleast lack enough "evidence" to attempt to falsely prosecute me for any criminal activity.

2) Still worrying though so here is a new question: If an employer/supervisor questions you about your activities at work, can your statements be used against you in court? Or do they have to tell you upfront that "your statements can and will be used against you in court"?

It seems very immoral that an employer may have every intention of firing you but can first threaten your job if you don't make statements that you know will be twisted and used against you.

For example, during the HUGE "blowout sale" when our competitor spent about $3000 on our clearance, I bought a "1 person supply" of merchandise for my own personal use (not unethical due to competition)....... But if my employer asks me, "Have you ever bought clearance from your department before?", then I feel he is going to say it is another incident of me/us "price rigging"...

So if I cooperate fully and honestly, can my own statements at work be used, without warning, in a courtroom? Again, it just seems to be unethical/immoral for an employer to be able to fire you for not cooperating when you suspect they are going to falsely accuse you.

I remember about 2 months ago, I was getting off work and I spotted a clearance sale on one model of portable picnic tables: Regular price $45...instead the sign said "price override $10." I bought one for my house and one for my best friend's house (for our family barbeques). I don't think I bought a crime then either.

So in summary, giving up on my job, I am hoping that they have NO GROUNDS for criminal charges because:

1. "price overriding to clearance old merchandise" has been precendented for years in all departments
2. "price overriding" still goes on today.. I took a picture of the 10-cent sign on all the valentines merchandise, and a few other "clearance" items.
3. my equal level supervisor set the pricing after our boss's boss told her to "get it sold" and after I recused myself and told her I was interested in buying so I couldn't decide.
4. one of our supervisors knew and approved of me buying our clearance merchandise. (although he can claim "plausible deniability" about my intentions of reselling, despite the fact that NO ONE needs a 15-person supply of merchandise unless they are reselling).

I would suggest a consult with a local Criminal Defense attorney. A local lawyer may have dealt with cases with your employer before. At the least, it may put your mind at ease.

Your employer is not a court of law, nor a LEO. They are not required to Mirandize you.

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Quoting PandorasBox

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I would suggest a consult with a local Criminal Defense attorney. A local lawyer may have dealt with cases with your employer before. At the least, it may put your mind at ease.

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I highly doubt that a local CD attorney has seen this situation (a customer "investigated" for buying things from their own department that another supervisor approved) so I came to this forum in hopes of getting information based on precedent/cases.

-Not judgemental advice saying "you screwed up" (see comments above) because I did everything I could to purchase them legally at the regularly approved clearance price.

-Not the usual "get a consult with a rinky-dink local attorney" who is going to want to get paid for having no advice.

If there is no precented case that anyone can refer me to, I will just wait and see if they attempt to press criminal charges before I hire an attorney. Forums aren't created for an auto-response: "consult an attorney". :(

^^^I say all this with kindness in my heart. Please don't read the above comments and assume a "rude attitude." I am looking for information, precedent, or even a discussion on how this situation can play out in court (i.e. "is there a preponderance of the evidence" for civil, or "beyond a reasonable doubt" for criminal charges, etc etc