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The trouble with vendor accounts

| May 18, 2018 | Embezzlement |

Even those who operate legitimate businesses in Minnesota might find themselves accused of white-collar crimes, such as embezzlement. The complicated nature of these accusations, which are often backed by years of investigative work, makes them difficult to investigate and even more challenging to defend against.

Embezzlement is a criminal offense- perhaps a federal one, depending on the circumstances. The charges themselves could be the result of an investigation instigated by any number of parties:

  • Government organizations
  • Former or current employers of the accused
  • Clients, employees or other stakeholders

One of the more common types of embezzlement charges revolves around false vendor accounts. Fox News reported on a recent example of this, in which a man was accused of creating fraudulent companies and submitting invoices to the organization at which he worked. His efforts led to an alleged $2 million in payments and to his arrest.

The Internal Revenue Service also keeps a record of corporate fraud on its own website. Examples range from coast to coast, illustrating the power of the IRS to investigate white-collar crime from all across the country.

The IRS investigations often deal with fraud on a grand scale, with payment orders typically reaching into range of hundreds of thousands of dollars. Additionally, these investigations tend to reach back several years.

IRS investigators and independent auditors hired by large corporations tend to be methodical and exhaustive when preparing cases. That does not mean that the techniques these professionals use are automatically admissible as evidence in court. It also does not mean that these investigators are necessarily obtaining the correct information.

Even official information from a company’s ledgers could conceivably be falsified to the detriment of an accused individual- and to the advantage of someone else in the organization. It is the job of a business law defense team to follow the money back, investigate the investigators and uncover the truth of a client’s inculpability.