What is the difference between fraud and embezzlement?
August 24, 1999
Date: Sat, 14 Aug 1999
Please, what is the difference between fraud and embezzlement? If a company leases a condo to an employee and the signed lease specifically states that the employee may not sublet the condo, but the employee does it anyway and pockets $10,000, does that count as theft or fraud?
Can charges be filed against the employee?
Date: Fri, 20 Aug 1999
I can't help wondering why you are writing me about this matter.
Go see an attorney at once!
According to Webster's dictionary, a fraud is the use of deception for unlawful gain or unjust advantage. To embezzle is to steal or use for one's own purposes money or other property which has been entrusted to one as an employee, servant or agent.
I'm not usre your situation is either one, but your employee has damaged you by not abiding by his or her agreeement, and you should be entitled to recoup your losses.
Date: Sat, 21 Aug 1999
I was writing to you because your name came up when I did a search on the web. The guy ended up resigning so he wouldn't get fired.
Thank you for your help.
Date: Tue, 24 Aug 1999
Thanks for writing.
It's good to "nip these cases in the bud."
For answers to more business questions and information about new tax developments, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight!
Home Introduction Seven Habits Business Improvement Book Reviews Need Help? Links