Some types of businesses are particularly susceptible to being the victims of fraud and embezzlement. When this happens, the company has every right to file charges against the offending person or entity to regain its losses. Even if insurance has taken care of all or a portion of the funds or assets lost, company owners may still wish to pursue business litigation to prevent it happening again, either to them or another company, by the same source.
The former vice president of central Texas’s Whitney 1st National Bank will appear in federal court on a charge of embezzlement from a federally insured financial institution of more than $1,000. In fact, the amount she is alleged to have stolen from bank vaults over the course of at least ten years amounts to more than $6 million.
Federal court documents say the former employee falsified bank documents to cover the thefts, which she used to purchase luxury cars and fund gambling trips to Las Vegas, Nevada and Shreveport, Louisiana. Reportedly, she would hand out co-workers $100 bills after her trip, claiming they were gambling winnings. On at least one occasion she brought $100 bills to the bank from home when the bank ran out of bills, and replaced them with $20 bills from cash drawers. She resigned from her position in January 2012.
The bank’s president says that its losses were taken care of by their holding company and insurance, and that customer accounts weren’t affected. However, employees or business partners who commit fraud or embezzlement against a company have the potential to seriously damage the business. Businesses wishing to protect themselves may benefit by consulting with a corporate law attorney.
Source: KWTX.com, “Former Central Texas Bank Employee Charged In $6 Million Theft,” Paul J. Gately, Feb. 19, 2013