The criminal justice system in North Carolina takes embezzlement charges very seriously. If you are facing such charges, the consequences if convicted could have an extremely negative effect on your entire life. At the Law Office of Neil W. Morrison, we believe that it is important for you to understand why authorities take embezzlement so seriously.
According to Chron.com, it is in part because of the negative effects that embezzlement can have on businesses. This is often particularly true of small businesses and startups, which may not have the resources for recovery that a larger or more established business might have.
Financial effects of embezzlement
Obviously, embezzlement is going to have a direct effect on business finances in the form of net losses. It can also compromise the integrity of an evaluation of the company’s economic standing. For example, embezzlement may involve inaccurate accounting in which it appears that the company has more money than it does. The company owner may then make a large purchase, only to find out later that there is not enough money to cover it.
Non-financial effects of embezzlement
However, not all the effects of embezzlement relate to a company’s finances. Embezzlement by an employee of the company can also lead to a deterioration of trust, both within and without. The secrecy required for an act of embezzlement may impede open communication within the company. Once discovered, customers and clients may be less likely to place their faith in the business following a breach of trust.
Because the stakes are so high for the affected businesses, the consequences for a conviction on embezzlement charges also tend to be very harsh to serve as a deterrent. More information about charges of white collar crime is available on our website.