Suspect Your Business Partner in Embezzlement Funds? Here is What You Need to Do Next
You have to put a tremendous amount of trust in the hands of your business partner. Embezzlement is a serious breach of that trust. It is a legally actionable—sometimes even criminal—offense. You may have a civil claim. Here, our Miami partnership litigation attorney explains what you should do if you suspect that your business partner is engaged in embezzlement—or general misuse of company assets—in Florida.
What is Embezzlement?
Embezzlement in a business partnership occurs when one partner unlawfully takes funds or assets from the partnership for their own personal use. It occurs without the consent of the other partner(s). Notably, the act of financial betrayal not only breaches the trust that is truly essential to any partnership but also often violates the partnership agreement and Florida partnership law.
Four Steps to Take If You Suspect Embezzlement By a Business Partner in South Florida
Do you suspect that your business partner is embezzling from the partnership? Whether you are a partner of a GP, LP, LLP, LLLP, it is imperative that you take a proactive approach to protect both your personal financial interests and to protect your company. Here are four steps to take if you are concerned about embezzlement by a business partner in South Florida:
- Document It: Embezzlement—and other forms of misuse of partnership assets—is a very serious accusation. Given the nature of the issue, it is crucial that you have documentation. You should document any suspicious transactions or financial discrepancies. Among other things, collect relevant financial statements, bank records, emails, and other evidence.
- Protect Accounts: You should immediately secure your business’s financial accounts to prevent further unauthorized access or damage. What exactly this entails depends on the specific circumstances of the case. Make sure that you do not take action that is outside the scope of your authority on the partnership agreement and Florida law.
- Raise the Issue: Confronting the issue directly with your business partner can sometimes lead to quick resolution—especially if there was a misunderstanding. With that being said, raising the matter should always be done with extreme caution. You may want to speak to an attorney before you speak to your business partner.
- Seek Legal Representation: Partnership disputes are complicated—particularly so when there are allegations of embezzlement by one or more business partners. Your Miami, FL partnership dispute attorney can provide advice, help you navigate the complexities of the law, and protect your legal rights and financial interests.
Consult With Our Miami, FL Partnership Litigation Attorney for Immediate Support
At Pike & Lustig, LLP, our Miami partnership litigators are experienced advocates for clients. If you believe that your business partner is embezzling funds, we are here to help. Contact us today to arrange a confidential review of your case. With an office in Miami, we provide partnership law representation all across Southeast Florida, including in Miami Beach, Boca Raton, Coral Gables, West Palm Beach, Palm Beach Gardens, Jupiter, and Fort Lauderdale.
