Business owner embezzles over one million

CASE STUDIES

Brother Embezzles Over $1,000,000 From Family Business

The Theft

This privately held company was owned by two brothers, both of whom were nearing retirement age. One brother, who was the CEO, strongly suspected that the other was embezzling money through a variety of ways. Although he had reason to believe this had been going on for many years, he had always looked the other way due to a lack of tangible proof and wanting to avoid a bitter family split. However, the CEO’s son would soon be taking over the business and he was determined not to have him inherit this problem.

The Investigation

Danbee’s investigative team obtained copies of secret accounting ledgers the dishonest brother had been meticulously keeping that documented years of on-going kickbacks and other forms of fraud, which exceeded well over $1 million. Additionally, Danbee compiled video showing the brother collecting cash payments from various vendors he was working in collusion with.

The Outcome

Our client presented the evidence to his brother, which not only included the financial records and video documentation, but also contained a list of several of the assets he had purchased with the embezzled funds.

Rather than face criminal prosecution and civil litigation, the dishonest brother agreed to sell his stock for a fraction of its market value and tendered his resignation.