An act of fraud involving embezzlement, misappropriation, fudging, or concealment of related party transactions or diversion of funds is the intentional misuse of another person’s property without their knowledge.
Fraud can be committed by white-collar employees, middle managers, senior executives, and even company CEOs.
It is difficult to detect an employee’s intent to commit fraud, but there are guidelines that companies should follow to avoid this type of crime.
The article will explore what is considered an act of fraud involving these activities and how to avoid them.
Actions such as embezzlement and misappropriation can be considered criminal acts and result in criminal proceedings with the accused charged with a crime carrying penalties including imprisonment.
It should be common knowledge that fraud can be found in many aspects of society, including finance. Fraud committed by an employee typically involves embezzlement, misappropriation, or diversion of funds.
What is considered a misappropriation of funds at a company? For example, one could steal money from their employer to pay for a home mortgage, college tuition, debt-relief services, vacations.
These types of fraud are often referred to as related party transactions or diversion of funds.
There are preventative measures an employer can put into place in order to protect against financial fraud.
It is highly recommended to hire an outside Private Investigator in order to investigate Corporate Financial Fraud activity. Talk to one of our licensed Corporate Fraud Investigators.