Quality Should Be Your First Consideration

Is your partner defrauding the company? 

On Behalf of | Feb 12, 2023 | Fraud

When first launching your company, you believed that you could take the world on your own. Although your business was successful, it soon became apparent that you would need some support. You decided to take on a team of staff and a business partner. 

You chose a business partner based on what they could bring to the company in terms of knowledge, skills and capital. Unfortunately, you have major concerns that they could be defrauding the company. If the following has occurred then you could be right. 

1. Their lifestyle doesn’t match their pay 

You know exactly how much the company is bringing in and how much you are paying out on salaries. It’s been a tough few years but by tightening up the purse strings a little your business is getting by. It seems like your partner hasn’t been doing this, though: They’ve arrived to work in a brand-new sports car. You’ve also heard that they’ve purchased a new home recently and even a boat. Where is the money coming from for these purchases? 

2. They are cagey about their business deals 

The lavish purchases of your partner have caused you concern, so you decide to ask them about it. They tell you that they’ve been following a lead and it has finally paid off. The trouble is that you have not seen this reflected in the company’s accounts. Has your partner been skimming off of the top? Why is there no record of this apparently lucrative new deal? 

3. They never want to leave the office

Having a business partner that always wants to stay at work longer than you may sound like a good thing. But you have to ask yourself why this is the case. You know full well that no more clients will be calling at the end of the day, and you’re all set for tomorrow. There’s really no reason for your partner to work extra hours. Could they be hiding something from you? It is not uncommon for a fraudulent business partner to cover up their tracks once everyone else has left. 

If your business partner has defrauded the company then you need to hold them to account. Not only could it be a criminal matter but you’ll also need to dissolve the partnership. Having legal guidance behind you will help to highlight your options. 

FindLaw Network
Distinguished TM AV | LexisNexis* Martindale-Hubbell* | Peer Review Rated | For Ethical standards And Legal Ability
Texas Lawyer | Litigator of the Week
Texas Bar Foundation | Sustaining Life Fellow