Hi there. I am looking for someone who can advise me on a particular issue I have with a past client. She was terribly difficult to work with, and so we ended up having to fire her as a client about halfway through the project. We canceled the remaining billing, and even gave her a partial refund. Many months after this I learned she had been disputing / submitting chargebacks against the original payments she made (corresponding to the first half of the project, which was completed). Unfortunately I was not notified about this until after the dispute period (the automatic email they sent me about it went to spam) and so it automatically ruled in her favor. So in effect, she basically used this approach to steal $4,500 from my company, and I'm looking for someone to advise me on possible courses of action here. For example, maybe things like: - filing a lawsuit - threatening her with a letter from a lawyer - some other approach? - I also realized we still have her card on file, and so i think I can try to rebill it again for the same amount, and this time I would have a chance to submit evidence during the likely dispute she will probably try to do again. Is this advisable? Are there any negative legal consequences from using this approach? Overall, would really appreciate for a professional who can advise "here are your options, pros / cons / implications of each, I would recommend X, etc" Thank you
Your first step is to contact an experienced intellectual property attorney that can help you determine the best course of action and guide an investigation. You have several options for dealing with the employee. All but one could create difficulties in the future.
A written warning, probationary period, and repayment all sound like appropriate disciplinary measures until you think about the impact on the rest of your employees. Not only will these remedies send a message that the theft was not serious, but you are also allowing someone who stole from you once to have the opportunity to do so again.
Termination, as harsh as it sounds, is your only real choice for employee theft. To build the case for termination you need to:
Gather evidence. Video and digital evidence are strong. A witness is also appropriate.
Audit the computer files and financial records.
Preserve documents, computer files, and emails.
Maintain a chain of custody to prove there was no tampering with the evidence.
If you perform interviews or any other investigation, document everything you learn. You will need it when you report the theft to the police and to make an insurance claim to recover losses.
Your attorney can help you with civil liability even if the theft is not prosecuted as well as assist in the termination process, especially if the employee is a union member or part of a collective bargaining agreement.
As an entrepreneur or small business owner, learning that an employee has stolen from your company can feel like a threat to your child. Take measured steps to gather evidence to prove the wrong-doing on the advice of your attorney. To prevent future issues, put a policy and basic accounting controls in place.
Answered 3 years ago
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