My question involves criminal law for the state of: CA
What criminal charges does the following fact pattern support? Embezzlement, grand theft, fraud, all the above and more???? Felony I would think?
The bookkeeper was laid off due to lack of work recently. As I began to help with the business, it soon became apparent the person was "cooking the books" and editing credit card statements to mask their 4+ years (so far) of embezzling from the company. Without getting too specific, I'll share what is very obvious. And yes, we do have LE involved, but very early in. Bookkeeper had not been contacted by LE yet, and we have not contacted said bookkeeper.
So far, person is into us for ~$100K. Likely to go higher. Restitution is a non-starter, person doesn't have the money.
1. Person made purchases (online and in person) on their own assigned company credit cards which are obviously for personal gain and not business related. THEN, after downloading the company CC statements from the bank, they edited their charges in Adobe Acrobat to make the charges appear to be business related. eg Person buys Dodgers tickets for their personal use, then edits the company CC statement to show Costco purchase of business related purchases for same amount. Then approving the "fake" purchases and even giving them the appropriate G/L coding for accounting purposes. This person also generates the company checks to pay the CC charges. Person presents the altered statements coded for accounting purposes, along with a company check to the owner, owner does a cursory review, signs the check to pay the CC company, the fraud cycle is complete.
2. Person made online purchases and payments to their personal creditors (car payments & more) using 2 other employee's CC information. Then, as described above, edited the charges on the statements to appear legit. Because the company had non-existent procedural "checks and balances" to have legitimate accountability, the 2nd & 3rd employees would not even see the CC statements of their card activity, so they were never aware of the fraud.
Please don't get me started on all the "usual and customary" business practices which would have prevented this crap. I know that and in the process of setting up correct practices for them. I'm in this trying to help them unf**k the situation and believe me, it's a mess.