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Photo of Joshua Nielsen
Photo of Joshua Nielsen

Misuse of company credit cards may lead to embezzlement charges

On Behalf of | Feb 22, 2020 | White Collar Crimes

Embezzlement typically refers to situations in which employees misuse their employer’s funds. The funds may find their way into covering personal expenses or transfer to another individual, but the basic allegation is that it represents theft from an employer. 

Many organizations rely upon the convenience afforded by credit cards to cover various expenses. Under certain circumstances, however, those employees entrusted with them might experience the temptation to use them for other than company business. 

In two separate cases, a Raleigh man and a Beaufort County bookkeeper faced newsworthy employer credit card embezzlement charges. The more notable of the two involved the Raleigh man. As reported by CBS 17 News, prosecutors alleged that the 44-year-old man who worked as a manager at a lab-equipment manufacturer allegedly made “hundreds of transactions” involving unauthorized use. 

In what is reportedly the largest case of embezzlement in Wake County, the manager purportedly charged more than $5 million for personal use on a company credit card over a five-year period. He pleaded guilty to eight counts of making purchases by false pretenses and faces over ten year’s incarceration. 

In Beaufort County, a school district’s bookkeeper received a sentence of two years of probation for alleged embezzlement of $4,500. The misappropriation of funds purportedly occurred through her use of a school’s credit card for personal purchases during May and June of 2018. As reported by the Island Packet, the probation sentence was “in lieu of” three years’ incarceration. 

In a written statement to local law enforcement, the bookkeeper admitted that using the card to purchase various household and food items was a “stupid decision” and that it was because her “financial situation was bad.” She pleaded guilty to breach of trust with fraudulent intent and the original amount allegedly taken underwent a reduction to $2,250 in the final charge.