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  1. #1
    Join Date
    Jun 2009

    Default Embezzlement, Fraud, and Misuse of Funds

    My question involves criminal law for the state of: California

    Hello People

    I own a corporation which is incorporated in California

    Ok. So we are actually a towing business
    I recently found out my business partner has been embezzling.

    Mainly Petty cash funds. Shes been buying things at sams club for the business and purchases personal things for herself. She gets back to the Shop and Places the receipt so to show she used the petty cash for business expenses. So thats Number 1 fraud.

    Fraud/Embezzlement 2

    We use 10 cell phones in our business for the drivers and such and employees. Recently her brother called me on my company phone and it showed her name as the caller ID. Know being the suspecious person iam i did some research and started calling all the numbers on the Business account. The number her brother called me from was fine as it was her personal Phone and not company phone. So no worries on that. BUT one of the numbers i called for the business turned out to be one of HER side business. Some sort of makeup selling business.

    Our phone bills range from $25-$35 for all Phones
    The one she had for her side business rang up a bill of $200-$300
    Obviously this is a misuse of Business equipment as well as funds so this is considered fraud Number 2.

    Her husband which is actually the President on the corporation had recently within the last 4 monthes issued a letter that says due to his law enforcement activity he is resigning from the company. Due to he does not wish to lose his job if the business does anything to harm his job.
    Iam the Vice President and shes only a secretary.

    The corporation paper work is not filled out at all. I was planning on Making myself the Corporation President as they did not bring anything to the business other than good REPOR. I brought the money and the business equipment. I dont see this as unethical or anything because the plan was for me to be president anyways. We just never filled out any of the paperwork. With his resignation letter and the the Proof of the misdeads going on i should be able to KICK them off the company and charge them with fraud and misdeads and such. I just want to threaten them and make them go away and no really press charges as i dont want to harm his job or anything.

    To make matters worse she used to work for a bank and had gotten caught 10 years ago from embezzlment and spent some time in jail. I thought she was over that considering she married a law enforcement officer.

    Please give me some insight on whats the best option. I will be hiring a lawyer as soon as i can, but i would rather get some info from here first.

    thanks in advance

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Embezzlement, Fraud, and Misuse of Funds

    Even if somebody has stolen from the company, you can't unilaterally appropriate their shares. You can consider filing charges, but I suggest consulting a business lawyer first.

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