Avoid Hiring an Embezzler

Recently there have been numerous items in the news concerning embezzlement. Most of the time they deal with just thousands of dollars, although in some cases they deal with millions. It happens not just in Fortune 500 companies, where the large number of employees increases the chances that there will be an embezzler, but also in small companies and family businesses, even in churches and volunteer fire groups. The business law attorneys of Saidis Sullivan & Rogers can help your business to avoid hiring an embezzler.

How Embezzlement May Start

An employee typically starts embezzling because an opportunity opens up. He or she may even start out intending to repay the money, but for the moment, there’s a need for extra money and the opportunity seems too good to miss. Perhaps a spouse has been laid off or an illness in the family has built up medical costs. The employee could simply be living beyond their means, addicted to something that costs money, or may have incurred gambling debts.

If the first embezzlement is not noticed, that employee could be tempted to repeat it. Intentions to repay may be forgotten. An employer could lose a great deal of money if there are no checks and balances in place to catch this crime. By the time it is discovered, the employee may well have spent the money and in that case, the employer would have to rely on a sentence that included restitution over a period of time. Depending on the amount embezzled, that could be years.

Preventing Embezzlement

If you are a business owner, it would be wise to create a situation where embezzlement would likely be detected at once. That would offset any temptation for an employee to begin embezzling. Set up an oversight system for each employee who handles money in any way.

It would be wise to also re-evaluate your hiring practices. Be sure you study an applicant’s past job history and speak to at least one of the previous employers. Are there repeated changes of employment? Any gaps in the employment history? Any periods of self-employment? These are features to look into and question the applicant about. A period of “self-employment” could have been spent in a jail. This sort of applicant evaluation does take more time, but in the long run it could be time well-spent.

Relevant Law

Pennsylvania’s Criminal Code governs how a prospective employer can use a person’s criminal history in deciding whether or not to hire that person. If there is an arrest on an applicant’s history but no conviction, a company cannot use the arrest as a reason not to hire. There must also be a conviction for a misdemeanor or felony offense. Read more about Criminal Records and The Hiring Process.

No employer wants an embezzler on his staff, and it is natural to recoil at the idea of hiring someone who has been convicted of embezzlement. However, the law requires that the prospective employee’s criminal history must bear some relevance to the position sought. The law further requires that an employer notify the applicant in writing if a decision not to hire was based in any part on the applicant’s criminal history.

If you are in the position of having discovered an embezzler among your business staff, or if you suspect the presence of one, our business law attorneys can help. Employment issues and personnel policies tend to be confusing these days and we can advise you on how to handle a given situation. We can also pursue an aggressive court action if that is necessary.

Please call or email our law office today for a free case review. We proudly serve the areas of Camp Hill, Harrisburg, Carlisle, West Shore and Lemoyne, Pennsylvania areas.