My question involves criminal law for the state of: New York

I am a small family business owner (passed down through two generations). Our employees are incredibly loyal and have been with us a long time. We use a HRA (health reimbursement account, same as flex spending but employer funded) to help pay some of our employee's health expenses.

While auditing these expenses, I found that a former employee who left the company 2 years ago purchased and returned some items using this plan anywhere from six to three years ago. Altogether, she returned about $2,000 worth of items (expensive medical items). I do not have it out for her, but I need to know if audited by the IRS, will this affect my company? My lawyer says no, but I want a second opinion.

If I choose to pursue her to return the money: is this civil or criminal fraud? Would law authorities be involved? Or is it tax evasion? Not sure how severe this is.

In addition, for fraud - I understand you have to prove intent to return the items which I'm not sure if that can be proven. Can any legal experts weigh in on this situation?