How To Investigate Embezzlement
Recent studies indicate that employee embezzlement has become so rampant that it accounts for the majority of ordinary business losses suffered by employers. Some estimates indicate that more than $400 billion is stolen annually by employees in the United States. Our experience has shown that incidents of employee embezzlement are common regardless of a particular company's size or sophistication.
In certain ways, investigating suspected embezzlement is similar to investigating other employee misconduct. The scope and manner of the investigation will depend in part on the size and complexity of the theft. Of course, as with any investigation, the employer's right and ability to investigate facts and circumstances surrounding the incident are intertwined with the myriad of rights and protections conferred upon employees by federal and state laws.
When an employer is first confronted with suspected embezzlement, there are generally four objectives:
To determine whether there was an actual theft;
To determine the total amount and method(s) of the theft;
To remove the wrongdoers from the workplace and take remedial actions to prevent such conduct and losses from occurring in the future; and
To recover the money or property lost.
Special Investigations Group's white collar fraud investigator, Fmr. FBI SAC Gene Debbaudt helps our clients uncover the truth. What happened? Who was involved? How was the crime conceived, carried out and concealed? When did key events occur? Where were the failures in management, supervision or governance? And what strategic, tactical and fundamental steps should be taken – immediately and over time – to close windows of vulnerability?
By integrating specialized expertise in financial crimes investigation, compliance, law enforcement, forensic analysis, data analytics and cyber investigations, Special Investigations Group assists corporations, boards of directors and management in managing and mitigating exposure to these risks and preventing outcomes that could result in financial, reputational or regulatory damage to reputation and shareholder value.