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  1. #1

    Default Can You Face Criminal Charges for Employee Discount Abuse

    My question involves criminal law for the state of: Vermont

    Hi,

    During the past 4 weeks I have bought items for a total of 15,000$-20,000$ using my employee discount and have been selling these items for profit. These are electronics of high value with a particular brand.

    Is this illegal and can I be prosecuted / sued for buying large amounts of items at employee discount price and selling it to people at lower than retail price?


    Thanks

  2. #2
    Join Date
    Jun 2017
    Location
    California
    Posts
    459

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    Sorry, this site only deals with US laws. I'd suggest you consult a local solicitor.

  3. #3

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    could you still give me advice on legal law in the US? Id be happy to know. thanks

  4. #4
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    what are your employer's policies? What documents did you sign at new hire regarding your employee discount or at purchase when you use your employee discount?

    Generally at some point, I suspect your employer will audit employee purchases, especially for very large amounts and will wonder why you needed 22 TVs (or whatever). It is possible they will consider it theft of profits.

  5. #5

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    Quote Quoting hr for me
    View Post
    what are your employer's policies? What documents did you sign at new hire regarding your employee discount or at purchase when you use your employee discount?

    Generally at some point, I suspect your employer will audit employee purchases, especially for very large amounts and will wonder why you needed 22 TVs (or whatever). It is possible they will consider it theft of profits.
    In policies and documents signed; only states misuse of employee purchase can be up to dismissal. Does not speak of sueing or criminal charges. Although i do agree 20,000$ is a large amount, but what if i get into the higher 50,000$ maybe 70,000$ would it then be obvious for me to get sued? And on what grounds? I take the items and sell them to people out of the store, not actual people in store.

  6. #6
    Join Date
    Jul 2010
    Posts
    8,006

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    Having worked internal investigations for multiple large retailers, I can speak from my experience. Discount abuse cases were not referred for prosecution, the offenders were just terminated. Your employer may try to get an egregious case like this referred for prosecution but I don't think it's likely to be picked up. The prosecutor would have to somehow shoehorn your conduct into fitting a criminal statute. You were not really stealing from your employer. You paid the agreed upon price. People buy stuff at reduced prices to flip all the time.

    They could also try to sue you as someone who bought from you was a customer that they lost. They'd have a hard time proving it but they could make you shell out a lot of money in the process.

    Did you ever work any deals on the clock or on the property?

  7. #7
    Join Date
    May 2014
    Posts
    211

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    Quote Quoting LegalWriter
    View Post
    Sorry, this site only deals with US laws. I'd suggest you consult a local solicitor.
    Vermont isn't in the US any longer? Damn, was I sleeping when they did that?

  8. #8
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    The OP didn't have that originally in the OP.

  9. #9

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    Quote Quoting Guybrush
    View Post
    Vermont isn't in the US any longer? Damn, was I sleeping when they did that?
    Im in Canada but changed it as this is for USA laws only.

    Quote Quoting Taxing Matters
    View Post
    The difference between what you sell the item for and the price you paid for it is indeed taxable income in the U.S. So if you buy a TV for $500 on your discount and sell it for $700 you have $200 in taxable income that you must report on your income tax return. Moreover, as you have been doing this as a regular activity, it may be considered business activity and thus subject to self-employment tax (Social Security and Medicare taxes) too. Failure to report the income can lead to very expensive civil penalties and/or criminal prosecution for tax evasion, which is a federal felony offense. Given the kind of money you seem to be making off this you really need to be keeping very good records of the purchases and sales and you need to ensure your income is properly reported on federal and state income tax returns.

    Right thank you for clearing that up. indeed i had total deposit of 24k in the account being 17k cash and 7k wire transfers. hopefully this helps my case and they don't red flag my bank account..

  10. #10
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Employee Discount Abuse 15,000$-20,000$, Can I Prosecuted for Buying and Selling

    You do realize that the laws in Canada and the laws in the US are not the same, right? That it doesn't make a damned bit of difference how things work in the US if that's not where you are?

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