Falsely accused by top management

[Coily]

I found out while doing end of year book keeping that the President of my small company convinced himself that I was embezzling from the company. I was shocked and outraged that such accusations would be made against me, especially as I have foregone pay for a few months to ensure the company could have operating capitol.

As the President is mostly retired, unless it's to make the egregious accusations apparently; to which our external accountant scoffed and corrected. I am really at a loss as what to do next, I have balanced the books, dotted I's crossed T's; I started at the bottom of this company and am the sole Director. Now all I want to do is walk away after 20 years. For the sake of customers I may stay through the 2nd quarter, but if I leave the company closes.

I know everyone out there will spout the usual, don't leave until you have a new job lined up etc etc. The standard line. But I am so physically ill over this allegation, I am not sure I can put my best foot forward in an interview, or even want to stay in the same industry. Luckily those baseless accusations were only within the company so my reputation is clean from the outside perspective.

The other problem is I haven't a clue what I want to do, heck of a way to start the new year.

 

[Seraphim]

Seriously I would walk away and let them sink. I am so sorry this is happening. If you can I would also retain a lawyer and sue for libel and slander . 

[Coily]

7 minutes ago, Seraphim said:

Seriously I would walk away and let them sink. I am so sorry this is happening. If you can I would also retain a lawyer and sue for libel and slander . 

As this was quashed quickly I won't go down the lawsuit route, unless it becomes difficult for me to attain new employment. But I am retaining record of this, just in case.

 

[Kwothe28]

Is company doing good now? Meaning can you turn things around and stay or you would need to go anyway?

Because if company goes under when you are there it would be even worst for you. So you maybe should plan an exit depending on a situation.

[left due to request]

58 minutes ago, Coily said:

I found out while doing end of year book keeping that the President of my small company convinced himself that I was embezzling from the company. I was shocked and outraged that such accusations would be made against me, especially as I have foregone pay for a few months to ensure the company could have operating capitol.

embezzlement is a serious charge.  Couple questions.  you said you paid for a few months.  Paid what or whom?  Secondly, by paying this you could have a positive operating capitals?  How is that even possible when you reduced the operating cash for next quarter or year etc...?

This to me is a flag.  Why would you prepay vendors and claim that you have operating cash available?  Maybe the company is doing so well that they had too much cash on hand? (to avoid tax?)

Did you explain what you did with operating income?  What did accountants change during an audit?  Did they ask or tell you what they changed?

Sorry for all these questions but from what you are saying, it makes sense for your president to accuse you of unbalanced sheets and how you balanced it.  I'm probably missing a lot but only thing you can do at this point is to find out why they are accusing you of embezzlement.

[Coily]

I'll go through this in a more organized rather than me dealing with the shock of the moment, and thus probably unclear.

1 hour ago, rsml123 said:

embezzlement is a serious charge.  Couple questions.  you said you paid for a few months.  Paid what or whom?  Secondly, by paying this you could have a positive operating capitals?  How is that even possible when you reduced the operating cash for next quarter or year etc...?

I went without my personal income for a couple of months (once a quarter). In consultation with my accountant, I took on paper an unpaid vacation during those times. So there were minimal payroll expenses during that time, also filed those properly with the tax authorities.

This to me is a flag.  Why would you prepay vendors and claim that you have operating cash available?  Maybe the company is doing so well that they had too much cash on hand? (to avoid tax?)

No vendors were paid in advance, only with proper invoices.

Did you explain what you did with operating income?  What did accountants change during an audit?  Did they ask or tell you what they changed?

Nothing was changed, except when a bill was accidentally entered twice in our books. The accountant caught that, we compared bank statements to ensure there wasn't a double payment.

Sorry for all these questions but from what you are saying, it makes sense for your president to accuse you of unbalanced sheets and how you balanced it.  I'm probably missing a lot but only thing you can do at this point is to find out why they are accusing you of embezzlement.

The problem is the accusation was made without even looking at the books or talking to our accountant. They just decided because I didn't show them the books at the specific instant they asked, while I was dealing with a customer; that I had to be up to something shady. The President admitted as much in an email.

 

[Coily]

1 hour ago, Kwothe28 said:

Is company doing good now? Meaning can you turn things around and stay or you would need to go anyway?

Because if company goes under when you are there it would be even worst for you. So you maybe should plan an exit depending on a situation.

The company is doing well enough, as we can in the current market. Post Pandemic we have had to change a lot of our customer base due to more people working from home. So It's financially stable, but our revenues are dwindling due to market forces.

I am of the mind I should exit regardless, I cut my personal income in half during the pandemic; and haven't been willing to bump it back up with the lack of significant projects as we had in the past.

[left due to request]

Good, thank you.  I see what you have done and also understand now better.  So the accusation of embezzlement is not a current accusation, correct?  Since you actually balanced the book properly.  I would suggest an apology on paper just in case this issue comes up again.  I'll be damned and pissed off of such accusation was made due to perceived double payments on invoices.

Since you clarified everything, I think it's time for you to move on.  Don't give them another quarter.  Ask for your vacation times and get an attorney to rightfully ask for what's yours. 

A company do not fold because one person leaves.  Don't ever believe that's going to be the case.  They will hire someone after you to look out for their interest and it will go on.  You, however, will need to find another position that needs CFO or even VP position.  There are a lot out there now since most of the aging CFOs left their companies due to COVID. 

Leave the place that do not trust you and don't worry about the employees.  They will hire someone in your place as you should look for another position.

[Betterwithout]

I don't know much about the companies structure, but is it possible to hire another outside accounting firm to audit/verify books?  This would at the least clear your name... and conscience.
Just a thought

[left due to request]

54 minutes ago, Betterwithout said:

I don't know much about the companies structure, but is it possible to hire another outside accounting firm to audit/verify books?  This would at the least clear your name... and conscience.
Just a thought

They did and done.  He's venting.

[Batya33]

50 minutes ago, rsml123 said:

They did and done.  He's venting.

I don’t see him as venting.  I see him as seeking input and guidance for his next move. 

[Betterwithout]

1 hour ago, rsml123 said:

They did and done.  He's venting.

yes, they hired another outside accountant, but how about a second outside firm.

[left due to request]

2 hours ago, Betterwithout said:

yes, they hired another outside accountant, but how about a second outside firm.

to confirm that he embezzled money?  the accountant already found his errors and fixed it and he's not being blamed for anything right now.  He was accused and he was upset for that accusation while he dumped his own vacation time, pays and pay cut.  BTW, he replied to my post of questions directly.  Perhaps that's what's not seen here... scroll up and see how he replied.

[Coily]

2 hours ago, Betterwithout said:

yes, they hired another outside accountant, but how about a second outside firm.

The accusation was back peddled rather quickly. How ever I am still stewing and angry over the fact I was accused, before the President even looked at the bank statements and the account’s work. 
In short I was accused based on a statement (from my email) that “we need to be careful of money right now, because we don’t have the cash flow we used to. It’s been a rough year.”

[Starlight925]

Guilty people often accuse others of their own crime.   “Look over there”! while they commit the crime themselves. 
 

I think your President either was embezzling himself, or planning to. 
 

You need a lawyer.  
 

Yes, you were cleared by the accountant, but if this a-hole President accepts you’re not getting paid to float the company, only to then accuse you of embezzling, then I assure you, you need this documented properly. 
 

You do not want this to come up and bite you down the road. 
 

Defamation law is an emerging specialty, as it’s becoming more common.  Find a lawyer who specializes.
 

And you need a new job.  Even if it means flipping burgers for a while. 
 

I was asked to falsify documents for a publicly traded company.  This was in the days of the Enron debacle.  I consulted an attorney, and I’m glad I did. 

[Coily]

12 minutes ago, Starlight925 said:

Guilty people often accuse others of their own crime.   “Look over there”! while they commit the crime themselves. 
 

I think your President either was embezzling himself, or planning to. 
 

You need a lawyer.  
 

Yes, you were cleared by the accountant, but if this a-hole President accepts you’re not getting paid to float the company, only to then accuse you of embezzling, then I assure you, you need this documented properly. 
 

You do not want this to come up and bite you down the road. 
 

Defamation law is an emerging specialty, as it’s becoming more common.  Find a lawyer who specializes.
 

And you need a new job.  Even if it means flipping burgers for a while. 
 

I was asked to falsify documents for a publicly traded company.  This was in the days of the Enron debacle.  I consulted an attorney, and I’m glad I did. 

I have a lawyer friend who has been advising me since this blow up. 
On the fortune side the blatantly fabricated accusation and clearing documents have been sent to a recommended firm, as well as a signed affidavit by the accountant.

My current suspicion is that the president didn’t like my changes to the company structure in his semi retirement. So this was more of a bullying tactic that blew up in his face.

Regardless, I am planning my well documented exit.

[Cherylyn]

I would stack up tons of evidence to clear your name.  Save all documents, computer work, emails, online info, paper and paperless records, all of it in order to prove your innocence.  Unfortunately, in this day and age, your good word and good name aren't good enough.  You have to back it up with records in order to falsify unwarranted accusations. 

I'm sorry @Coily.  Turn this around to your favor.

[catfeeder]

4 hours ago, Coily said:

I have a lawyer friend who has been advising me since this blow up. 

That's great, Coily, and I'm sorry you're going through this.

Given that you already have someone looking out for your best legal outcomes, and given that you are likely to find another job when you are ready, the position that I would adopt is that the guy is probably in early stages of some form of dementia.

Would I need proof of that? Naaah. Such speculation would just move me out of my own way toward enough compassion to soften my exit and make my life easier.

Ravings from someone no longer capable of appreciating my loyalty over the years would make me feel sad, but not angry.

Excusing such behavior wouldn't keep me there, but it would depersonalize the insult for me.

Write more if it helps, and head high.

PS: When I was in nursing, I had a patient call me a horrible bank-robbing b*tch.

I was not insulted.

 

[Betterwithout]

15 hours ago, rsml123 said:

to confirm that he embezzled money?  the accountant already found his errors and fixed it and he's not being blamed for anything right now.  He was accused and he was upset for that accusation while he dumped his own vacation time, pays and pay cut.  BTW, he replied to my post of questions directly.  Perhaps that's what's not seen here... scroll up and see how he replied.

my bad.  I missed that connection.

Good luck Coily.  A sticky situation for sure.

[Lambert]

I would make sure I had a copy of the documentation that proved my innocence.  I would talk to your attorney friend about how to approach the company about leaving with a severance package considering your time and service to the company.  Accusations of crimes by top leaders is serious. I would not work there.  Too bad for the customers and any friends you have there.  You have to save yourself.