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The Consequences of Embezzlement

Louisiana case provides clear example of embezzlement's cost.

Louisiana
State:

State v. Daigle, 688 So.2d 158 (La. App. 1997)

A Louisiana court sentenced a treasurer to ten years at hard labor for embezzling corporate funds. While the case involved a for-profit company, there are 3 lessons that will be instructive to churches.

First, it is worth noting how the treasurer embezzled company funds. He issued checks to an account he set up with a false name, forged the signature, and cashed the checks. The proceeds were spent on cars, jewelry, and gambling.

Second, the court could not determine how much the treasurer embezzled. He claimed it was $600,000. The company said it was $1 million. An independent audit could confirm only $312,000. Such discrepancies often occur in such cases, and this can cause problems.

Example. A church board determines that an employee has embezzled funds, but it has no way of knowing how much. The board agrees that if the employee resigns and reimburses ...

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Posted:
  • June 1, 1998

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