Shelley's Case — Theft & Fraud — Investigation

Client:  Shelley W.
Complainant:  Shelley's former employer, a service company
Potential Charges:  Theft and Fraud

Background:  Shelley was distraught when she walked into my office. She was trembling as she told me her story. She was an accountant for a service company. Over several years, she had stolen money from the dealership and had arranged for free services for herself and her friends. She had hidden the thefts and frauds through crafty accounting entries. Her employer had discovered some of these entries. He fired Shelley, and made an insurance claim for the losses, but he did not go to the police. The employer was now demanding an explanation for these suspicious accounting entries. Shelley was especially worried because she had a criminal record for similar conduct. She didn't know what to do. Should she respond? If so, what should she say?

Goals:  I immediately identified three goals:  (i) to bring Shelley a measure of comfort so that she could function in her everyday life; (ii) to avoid Shelley being charged criminally; and (iii) to avoid doing or saying anything that might be used against Shelley if she were charged.

Strategy:  I first let Shelley know that this wasn't the end of the world, that I was behind her 100%, and that we would face this challenge together. Having settled her mind, I explained our strategy. We would keep open a line of communication, maximizing the flow of information from them to us, and minimizing it the other way around. Why would I have any communication at all? Employers do not always report workplace fraud and theft. Sometimes, it's not worth their time and effort. Sometimes, they don't want the embarrassment. By keeping open a line of communication, I would have a window into what the employer was thinking and doing. Also, since most of the accounting entries did not clearly disclose an offence, I wanted to exploit every opportunity to point out that the mysterious entry was only suspicious, nothing more. I also did not want to abruptly cut off communication, as that might prompt the employer to conclude that Shelley "must be guilty to clam up like that," and then run to the police.

Results:  Over a three-month period there were a flurry of letters between the employer, the insurance company, and myself. These letters concerned the suspicious accounting entries. The employer and the insurance company freely vented their frustration at me for not providing, in their opinion, "complete and satisfactory" answers to their inquiries. In the end, they stopped writing and indicated that they were taking the matter "under advisement." We waited. Nothing happened. Shelley was never charged.