Should Employers Pursue Civil or Criminal Action?

The 2012 U.S. Fraud Examiners Manual spells out guidance for corrective action. It notes that policies with consequences and processes for people who commit or condone fraudulent activity are an important deterrent for fraud. Possible consequences include termination of employment, reporting the incident to law enforcement or regulatory authorities and pursuit of civil or criminal action against the perpetrators.

Of course, legal counsel should be consulted before taking action. But putting policies in place and notifying employees of potential actions the company might take can be a good deterrent. In addition, the policy should include a requirement to fix any control weaknesses that allowed the fraudulent activity to occur.

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Todd has more than 20 years of experience providing client solutions in consulting, accounting and tax matters. He has performed business valuations for a variety of purposes, including gift and estate tax, business planning, succession planning and for solvency purposes in bankruptcy. Todd is experienced in providing expert testimony, and his assistance with litigation matters includes reconstruction of financial records, tracing of transactions, damages analysis and valuations related to shareholder disputes and solvency analysis in bankruptcy and for marital dissolution.

Todd Burchett – who has written posts on BKD Forensics.


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