If you’ve made an accounting error that you fear may make you look guilty, it’s important to be proactive about what you do next.
Handling a company’s finances is a massive responsibility, and because of that, the risk of fallout from an error is high. However, many times, errors are just that—normal mistakes that anyone could make at work. It’s important to know how errors look to those on the outside and when those errors go from being understandable mistakes to out-and-out fraud. When you find yourself accused of the latter, the California embezzlement defense attorneys at the Law Offices of Robin D. Perry & Associates can help.
The embezzlement defense lawyers at our firm understand the myriad ways an accusation can ruin your life. From losing your professional certification to facing federal charges, the consequences touch every aspect of your life. With over 25 years of experience, attorney Robin D. Perry is committed to protecting clients’ freedoms and rights. Call us at 562-216-2944 to explore your legal options now.
Understanding Accounting Errors
Accounting errors are an inevitable part of working in this field. Simple math errors, data entry mistakes, transposed digits, or misunderstanding complex accounting rules can lead to mistakes that are generally caught and fixed fairly quickly. These issues are undoubtedly inconvenient and waste time, but they aren’t criminal—and when an accounting professional makes one of these mistakes once and has to deal with the professional fallout, the likelihood of a second error is slim.
What is Embezzlement?
Embezzlement is a type of white collar crime that involves someone in a position of power and trust—for example, a company accountant or executive—taking company property or funds for personal use. Essentially, anyone with access to company funds and accounts can be guilty of embezzlement. The important thing to know about embezzlement is that it is intentional. Someone doesn’t accidentally commit embezzlement by committing a few accounting errors; the very definition of the crime means that it must have been intentional.
When Errors Become Criminal
The question is, then, how do you determine whether an error is a true error or part of an embezzlement scheme? Embezzlement defense attorneys look for intent, of course, but proving intent (or the lack of it) can be difficult—you can’t read someone’s mind. As a result, we have to look at actions and their outcomes.
First, an error is often a one-off occurrence. When you run a full audit on the individual’s work within the company’s finances, you won’t find the same error popping up over and over again on a predictable schedule.
Second, an embezzlement scheme will benefit the person doing the work, either directly or indirectly. However, that doesn’t mean that every mistake that benefits someone is embezzlement. Even when a mistake financially benefits the person who committed it, that doesn’t automatically make it embezzlement. Consider, for example, someone doing payroll and accidentally entering “400” hours for themselves instead of “40.” It’s easy to imagine how this error may have occurred, and although it obviously benefits them, you need to look deeper to see if it is embezzlement.
Finally, if a mistake is just a mistake and not embezzlement, you’ll likely see the person attempt to correct it right away. Embezzlement requires intentional concealment and secrecy, and someone who reports their mistake to their supervisors right away is clearly not trying to benefit from their own error. Consider the payroll example earlier; if the error slips through, they keep the extra funds, and continue paying themselves extra, that would be a crime. If they reported it to management right away to correct their hours, then it’s just a mistake. An embezzlement defense law firm will often look into any corrective measures taken by the employee.
Protecting Yourself Legally
If you’ve made an accounting error that you fear may make you look guilty, it’s important to be proactive about what you do next. Don’t attempt to cover up whatever happened—concealment may make it seem as if you did try to benefit yourself and are simply covering your tracks. Yes, there’s the possibility that you’ll be reprimanded or disciplined for the mistake. However, that is a much better outcome than facing criminal charges and needing the services of an embezzlement defense lawyer.
Explore Your Legal Options With the Law Offices of Robin D. Perry & Associates
Have you been accused of embezzlement or other financial crimes? Do not wait any longer—you need to talk to an embezzlement defense law firm. Let’s discuss the accusations against you and begin building your case. Call us at 562-216-2944 or fill out our online contact form now.
Join the conversation!