Employer Stealing Money

[Housemartin]

I hope you kind people on this forum are able to offer some constructive advise.

 

My problem is that I have discovered that my employer is removing large amounts of money from the company account, flying out to Spain and using the money to service three personal mortgages on properties he own out there.

I have tried to advise him that what he is doing amounts to money laundering but his stance is 'its my company, therefore its my money.

He does this on a regular basis and when he does, there is never enough left in the bank to cover wages so the staff invariably have to wait an extra week or so for their salaries but he just doesn't care.

 

He just seems to think he can do as he likes.

[papasmurf1cx]

Hi

 

I suppose you feel that it is impossible to report him to the Police? How much are we talking about here? Apart from theft, Fraud, money laundering and false accounting I am sure there are more specific laws under the Companies act that he is breaking.

 

What is your position in the company? Are you an officer and could you be implicated should the wheel come off? If so to prove you have no criminal intent you should blow the whistle on this asap.

[Housemartin]

It seems like I have walked into somebody else's nightmare?

I have only been with the company a few months and what I am discovering is frightening!! I took up the position of Financial Controller after the Financial Director resigned, so am an employee rather than an 'officer'.

To answer your specific question Papasmurf, and thank you for responding its a relief to be able to talk to someone about this. Last Friday he withdrew £15,000 from one account and £5,000 from the other as his 'spends' whilst he and two of his friends went over to Spain on Sunday. Sadly it doesn't end there. His mortgage in the UK along with his co director is also paid from the company account. On a monthly basis he is withdrawing £6-8,00 a month in 'wages'. It is only a small company but he will not listen. I was told to mind my own ffing business when I questioned the blank stubs in the cheque book. He really screamed at me me across the office that it was my job to get the money in, nothing else..

I am so afraid that if I do report this to the police that he will in some way drag me down with it.

I am so worried.

[Housemartin]

Sorry, that should read £6-8,000 a month in 'wages'.

[andydd]

Is it a Ltd company, is he a/the director, I am assume it is a small company, with no HR, etc ? What does your position as F Controller entail, do you have knowledge of company law ?. There are many questions to answer here.

 

Andy

[Housemartin]

Hi Andy,

Yes, it is a limited company and he is the self-styled managing director. The other directors are his wife and his friend.

There is no HR department although his wife maintains she is in charge of HR.

Briefly, my position entails raising invoices for payment, credit control (which is a joke) By that I mean I am not allowed to see bank statements etc. I also run the payrol. I have just been told that I have to tell the staff that their wages may not be in the bank until next Tuesday, rather than today. I hate this situation.

I do have some knowledge of company law, to the extent that I know there is something seriously wrong going on but don't know what to do.

[papasmurf1cx]

Hi

 

Are the 'clients' at risk in some way? Is VAT Income Tax and national Insurance being paid?

 

It seems to me that you should be photocopying as much evidence as you can, taking account numbers down, making tracing the money easier for the police, address where the money is going to.

 

You are obviously not stupid, so you will have twigged why the FD jumped ship as fast as he could !!

[andydd]

Dont think I can give much more advice other than to start job hunting !, first think is to make sure that if anything criminal is going on to make sure it doesnt implicate you. Secondly how much does this mis-management actually affect you/other staff apart from late wages ?. Have you/others got a contract that stipulates payment dates ?. Otherwise any wages may not actually be 'late', once my last employer was late paying by a day, he did actually re-imburse bank charges but did point out that the payment date in the contract was 'before the end of the month' even though everyone did actually get paid on the 25th.

 

Andy

[rebel11]

Maybe some covert undercover work, risky but you could try to have the same conversation with the MD, but get it taped, if you feel that you are in danger, don't do it. Make sure its done discreatly. Also this must of been going on for some time, have they filed end of year accounts?

[Housemartin]

Hello again Papasmurf,

 

I don't think the 'clients are at risk per se, except that the guards may not turn up if they don't get paid. With regard to the VAT and PAYE contributions being paid That is another worry which perhaps I should just go ahead and report my discovery to the authorities.

Photocopying anything is not an option. The machine is right next to his desk!! Apart from that every part of the office is under cctv surveillance!

It is now clear why the FD resigned. I am going to have to go the same way, I cannot take this situation any longer. He came back in the office this morning with his 'friends' carrying many thousands of cigarettes, his sweeteners he calls them!!

I thank you for your interest in my predicament but I just had to let my concerns out somewhere. I now know what I must do.

[Housemartin]

Hello Rebel,

With the cctv, any kind of undercover work as you suggest would be impossible and to have this kind of talk with the MD would only end in violence towards me.

I did take a look at last years accounts a few weeks ago and they appear to have omitted at least two zeros from the true turnover, it really is a horrible situation.

[papasmurf1cx]

Housemartin

 

With language being used such as "sweeteners" I would make a sizable bet on the fact that he has a criminal record. Personally I would go to the police and HMRC asap and resign too, but perhaps only resign after you have spoken to them. No job is worth risking your own good character. If it is any comfort I am sure all our good wishes go with you.

[Housemartin]

Papasmurf, Thank you for your kind words. I feel so much better speaking with someone about this albeit anonymously. I know what I must do. I will be writing my resignation over the weekend. I will speak with my partner over the weekend to about going to the police and the authorities.

 

To all that have responded: I thank you.

[rebel11]

Hi House

 

HMRC have confidential whistleblowing line.

 

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1082706423&type=RESOURCES

[andydd]

Just to add in my experience small family run companies such as this are the worst to work for, they seem to think they are run purely for their personal benefit and when things go wrong you have no-one to complain to, no HR or other managers, just you and them..they also seem to rarely follow any laws regarding wages, holidays, redundancy, etc.

 

Andy

[ScarletPimpernel]

I will not go into detail about how I know, but HMRC's intelligence people are always interested in this sort of thing, and will protect the source of information. What may appear to be low-level bad business practice may be linked to other things. Blow the whistle!

[papasmurf1cx]

I will not go into detail about how I know, but HMRC's intelligence people are always interested in this sort of thing, and will protect the source of information. What may appear to be low-level bad business practice may be linked to other things. Blow the whistle!

 

I agree ScarletP. Once the person concerned breaks one law they seem to break as many as they can ie they do what they want. We will be interested in the outcome please let us know what they do.

[SteveH2508]

Are you a member of a professional association (e.g. AAT, ACCA etc.)?

 

If so, you should be able to get advice/guidance from them - they will have a professional ethics section.

 

This is AAT's standards page http://www.aat.org.uk/content/item2500/

[yorklass2009]

Just to add in my experience small family run companies such as this are the worst to work for, they seem to think they are run purely for their personal benefit and when things go wrong you have no-one to complain to, no HR or other managers, just you and them..they also seem to rarely follow any laws regarding wages, holidays, redundancy, etc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I'm sorry but my husband and I run a small firm employing 10 people and I follow employment law to the letter thanks! Employees are issued with a contract of employment given their full holiday entitlement and I make sure they get their wages. We are struggling like everyone else and my first worry is making sure wages are paid in order to keep trading. So please don't tar every small family run business with the same brush. I certainly would not dream of withdrawing thousands from a bank account to spend where I liked. Hmrc would have a field day not to mention the bollocking I would get from our accountant

[rebel11]

I think the key words are 'my experience' so in reality not refering to all small businesses. From what you say, you've got a very good business, operational etc.

 

Just to add in my experience small family run companies such as this are the worst to work for, they seem to think they are run purely for their personal benefit and when things go wrong you have no-one to complain to, no HR or other managers, just you and them..they also seem to rarely follow any laws regarding wages, holidays, redundancy, etc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I'm sorry but my husband and I run a small firm employing 10 people and I follow employment law to the letter thanks! Employees are issued with a contract of employment given their full holiday entitlement and I make sure they get their wages. We are struggling like everyone else and my first worry is making sure wages are paid in order to keep trading. So please don't tar every small family run business with the same brush. I certainly would not dream of withdrawing thousands from a bank account to spend where I liked. Hmrc would have a field day not to mention the bollocking I would get from our accountant

[papasmurf1cx]

Just to add in my experience small family run companies such as this are the worst to work for, they seem to think they are run purely for their personal benefit and when things go wrong you have no-one to complain to, no HR or other managers, just you and them..they also seem to rarely follow any laws regarding wages, holidays, redundancy, etc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I'm sorry but my husband and I run a small firm employing 10 people and I follow employment law to the letter thanks! Employees are issued with a contract of employment given their full holiday entitlement and I make sure they get their wages. We are struggling like everyone else and my first worry is making sure wages are paid in order to keep trading. So please don't tar every small family run business with the same brush. I certainly would not dream of withdrawing thousands from a bank account to spend where I liked. Hmrc would have a field day not to mention the bollocking I would get from our accountant

 

 

I agree with Rebel.... we are very critical of employers as we see a lot of abuse. However, when a good one comes on here and tries to do the right thing too we are supportive. So it does work both ways andy.