Q: I think I discovered the CEO of my company has been embezzling money through fake invoices, but I don't know what to do
Rumors have been at my company for 4 years about a VP that the CEO has paying, but no one had ever spoke to the person. I assumed that people were just gossiping, and I didn't push for clarification. This week I was organizing old company records, and I found years worth of fake invoices totaling several hundred thousand dollars paid out to a fake custodial company. The checks were all paid out to a person, not a company. The name on the custodial checks is for a fashion model who lives in LA. With some online checking, her online social media presence has her claiming to be the VP no one at my company has ever met.
A:
If you suspect that your CEO has been embezzling money through fake invoices, it is important to take action while also protecting yourself. Here are some steps you can consider under California law:
1. Document your findings: Gather and secure any evidence you have discovered, such as the fake invoices, records of payments, and relevant social media posts. Make copies and keep them in a safe place outside of the office.
2. Consult with an attorney: Contact a lawyer who specializes in employment law, whistleblower protection, or white-collar crimes. They can advise you on your legal rights, potential risks, and the best course of action based on your specific situation.
3. Report to the appropriate authorities: Depending on the nature and extent of the alleged embezzlement, you may need to report the matter to one or more of the following agencies:
- California Department of Justice, Office of the Attorney General
- U.S. Securities and Exchange Commission (SEC), if your company is publicly traded
- Internal Revenue Service (IRS), if tax fraud is suspected
- Local law enforcement, such as the police department or sheriff's office
4. Consider reporting to the company's board of directors or audit committee: If your company has a board of directors or an audit committee, you may want to report your findings to them. However, discuss this with your attorney first to assess potential risks and to ensure that you are protected from retaliation.
5. Protect yourself from retaliation: California has strong whistleblower protection laws, such as the California Whistleblower Protection Act, which prohibit employers from retaliating against employees who report suspected illegal activities. However, it is still crucial to work with an attorney to ensure your rights are protected.
Remember, it is essential to prioritize your safety and well-being throughout this process. Dealing with suspected embezzlement can be stressful and challenging, so seek support from trusted family members, friends, or mental health professionals as needed.
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