Money has gone missing from the company’s accounts – and you were the first to notice. For one reason or another, you suspect your business partner has been stealing.
What do you do now? The answer may depend a lot upon your goals for the situation and your business partner’s response to your accusations. Here are some possibilities:
Ask your business partner to repay and resign
Maybe your business partner has a gambling issue, or maybe they’re simply living beyond their means. Whatever the cause of their actions, you don’t want to see the business lose the trust of its clients or end up with a damaged reputation.
Rather than create a public record of the event, you may want to try to handle the issue quietly. If your evidence is concrete enough, you can approach your business partner with the facts and ask them to repay what they took and resign.
Sue your partner for their breach of fiduciary duty
Maybe your business partner insists that they were acting within their rights – or maybe they simply made some poor financial decisions. Your evidence indicates, however, that they were either prioritizing their own interests over the company’s or otherwise mismanaging company assets.
Even if you’re unsure if their actions rise to the level of a crime, you can still sue your business partner for breaching their fiduciary duty. If you are successful, you may be able to force them to repay the company for any losses it suffered.
Pursue embezzlement charges with the help of the authorities
This involves filing a criminal complaint with the local authorities and asking the prosecutor to look into embezzlement charges.
In Florida, embezzlement involving more than $300 is considered grand theft, which is a felony offense. If convicted, your business partner could face a fine of up to $10,000 and a prison term of up to thirty years, depending upon how much was stolen.
Understanding what to do when you catch a business partner with sticky fingers is tough – and it’s tougher, still, to understand what the consequences might be for your business. Before you act, you may want to seek tailored legal guidance.