Gathering evidence of partner misconduct to protect the business.

Successful businesses often have complex financial systems in place. One business partner could potentially make use of gaps in the data collection system that the company uses or their role at the company to embezzle from the organization. Such actions could go without detection for months or even years.

When one partner uncovers evidence of another partner’s misappropriation of business resources, they may feel desperate to address the situation to protect the company. Removing a partner who has embezzled can protect the company in the long term but may present numerous challenges in the immediate future.

How can the other partners in a business gather evidence of misconduct to remove someone from their role at the company?

They bring in forensic accountants

Financial records can either prove that someone did something illegal with business resources or establish that someone has manipulated a company’s financial records. However, the average executive will not have the time or knowledge to comprehensively review the financial records of the company. A forensic accountant is a professional with the training and experience necessary to identify either discrepancies in financial records or to track down embezzled and misappropriated assets. Their research can help build the basis for an embezzlement claim against a partner.

They document everything

Some business owners worried about a partner’s activities may want to avoid involving the authorities. They worry that prosecuting the partner embezzling from the company would harm the organization’s reputation and further diminish its financial resources.

As such, they may try to sweep the financial misconduct of their partner under the rug. Keeping detailed records of every questionable transaction and developing a well-documented collection of evidence about someone’s financial misconduct can play a major role in the buyout process or getting them to leave the organization. With the right documentation, one partner can potentially convince the other who has embezzled from the organization to leave their position and waive their right to severance payout of consideration for the consequences they would face should the company pursue any claims.

The process of negotiating with a partner and preparing to do so can be very lengthy and complex. Having the right support and guidance when attempting to resolve partner embezzlement can make a big difference for those who want to protect their organization against a partner’s misconduct.

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