The Right Place to Deal with Workplace Fraud

Contact: John Schmidt Jr., Phillips Lytle
Posted Apr 1, 2019

Recently, I decided to repair a small corner of dry rot on our porch. I grabbed a hammer, paint scraper and chisel. By the end of the day, the roof and floor boards were off, and I made a trip to Home Depot for a truckload of wood and roofing.

This is not much different than workplace fraud. Detection usually occurs via a missing bank deposit, unrecognized vendor, computer glitch or call from a customer you didn’t know existed … who apparently pays in cash. Maybe there was a distribution that didn’t square with your partner’s ownership percentage, or the financial statements were late. Fraud is often detected the same way I discovered my porch had rotted—chipping away and finding a bigger problem. You could start peeling the layers of the porch roof like I did. But if you don’t know where to stand, you might hurt yourself. So what to do?

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