People tend to think of embezzlement as overt misappropriation of company resources. A receptionist or secretary stealing from the petty cash drawer could be embezzlement. So could scenarios where salespeople falsify transactions or void legitimate ones to issue themselves checks.
Occasionally, workers may find themselves accused of embezzlement for behavior that they view as normal and appropriate. Executives, salespeople, managers and others with access to business credit accounts or authorized for spending reimbursement are among those at risk of embezzlement charges for seemingly minor financial activity.
Misrepresenting personal purchases can be embezzlement
Businesses often try to find every way they can to limit tax responsibility. Writing off business expenses is a clever way to reduce income tax obligations and optimize what the company can reinvest in its operations and employees.
Both worker reimbursement programs and corporate credit cards provide opportunities for workers to use company funds to cover necessary expenditures. Salespeople can potentially write off the cost of taking a client out to dinner or filling up a vehicle’s gas tank to drive to a meeting in another state.
In some cases, workers become so accustomed to using that system that they may start abusing it. They submit receipts for gas that they put into their own vehicles for personal driving or their daily commute rather than work-related transportation. They use the company credit card to take their romantic partner or sibling out for dinner and try to disguise it as a business expense.
In more egregious cases, people may buy equipment ranging from computers to power tools using a company card or a reimbursement program. While each of those transactions may be relatively small, they can add up to thousands of dollars of misappropriated funds over many years. Workers might even get the idea for such conduct during their training. The person helping them understand their new role explains that everyone occasionally treats themselves on the company dime.
Unfortunately, all it takes is a new manager in the accounting department or controversy about a company income tax return for the organization to look very closely at reimbursement requests and expense account spending. Financial downturns can also incentivize similar scrutiny.
White-collar criminal charges can cause a number of complications for the accused professionals. White-collar criminal charges can lead to fines and jail time. The courts can order the convicted employee to repay the amount of misappropriated from the employer. The worker also has to deal with the stigma of a criminal conviction that may limit their professional opportunities by causing background check and licensing complications.
Fighting white-collar criminal charges often begins with a thorough review of one’s circumstances with a skilled legal team. Those who understand what may warrant embezzlement accusations can respond when their employers complain about their spending habits.