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What to Do When You Suspect Your Business Partner of Fraud

Rutkin & Wolf PLLC Oct. 13, 2023

Contractor and engineer with blueprints discuss at a modern construction siteYou have worked hard to create your business and put it in a position to grow. If something puts your business in jeopardy — even if it’s done by your own business partner — you need to take whatever steps may be necessary to protect yourself and your company. If you suspect your business partner of perpetrating fraud, you should consult with an experienced business law attorney to learn what signs to watch for and what you can do about it. 

At Rutkin & Wolf PLLC, we have the knowledge and insight you need to become familiar with potential fraud taking place, how it can affect you and your business, and potential ways to seek a resolution. If you suspect your business partner of fraud, reach out to us to schedule a consultation to discuss your situation. From our location in White Plains, New York, we serve clients in the Bronx, New Rochelle, and throughout lower Westchester County. 

Warning Signs of Fraud 

Though committing fraud can happen in a number of different ways, there are some common red flags to watch out for if you suspect someone within your own company may be harming your company. Some of the more prevalent warning signs that fraud is taking place include: 

  • Excessive Expenditures — If you notice large debits or unusual purchases in the company’s accounts, it may be a sign that someone is using company funds improperly. 

  • Irregular Reimbursement — Employees or partners who travel extensively may defraud the company by falsifying or exaggerating their travel expenses. 

  • Inappropriate Relationships — Groups of employees who seem to be unusually close or show evidence of secret communications or meetings may be warning signs of unprofessional conduct. 

  • Improper Communications — If your partner or an employee is disclosing private company information to a party outside the organization, it can lead to the business being put at risk. 

  • Suspicious Financials — Perhaps the most common sign of fraud, inaccurate or misleading financial entries can be a strong sign that someone is trying to hide unethical or even criminal practices. 

If you have seen evidence of any of the scenarios listed above, it is in your best interest to investigate further to determine if something improper is taking place. 

Steps to Take If You Suspect Fraud 

While it may be difficult to completely safeguard your business against potential fraud, there are steps you can take to add more layers of protection, such as: 

  • Performing regular audits of all financials and departments. 

  • Requiring all members of the company to undergo additional training to guard against errors and warn them about the consequences of misconduct. 

  • Place new processes and safeguards in place to monitor communications and transactions. 

If your investigation yields further evidence of fraud, you may have grounds to take whatever legal action may be appropriate to protect your business. 

What Not to Do If You Suspect Fraud 

Just as there are certain measures you can take if you believe fraud is being committed within your business, there are also things you should avoid doing, including: 

  • Don’t immediately jump to conclusions. 

  • Don’t take action until a thorough investigation has taken place. 

  • Don’t strategize a plan without enlisting the help of a skilled business law firm.  

If your business is suffering harm, you need to avoid causing more damage by acting rashly. Consult with an experienced business law attorney to determine your available options. 

Options for Resolution 

The laws of the state regarding proper business operations can help you and your attorney lay the groundwork for your path forward. By taking legal action to hold your business partner accountable, you can both seek a resolution for the damage they have caused while also protecting your business from further harm. 

Each business and scenario is unique, which means there is no convenient “one size fits all” approach to dealing with questions about fraud. Reach out to our team to learn more about what you can do to pursue a favorable outcome. 

Contact Skilled Legal Representation 

All business matters are complex in their own right—but when legalities come into play and the future viability of your business is put at risk, things suddenly reach an entirely new level. With so much on the line, you can’t afford to attempt to handle such challenging issues on your own without the help of professional and knowledgeable legal guidance. By working with a law firm with extensive experience in helping businesses defend against allegations of fraud and navigate a wide range of other legal matters, you can feel confident that you will be protected. 

If you are located in the White Plains, New York area, or the areas of New Rochelle, the Bronx, or anywhere in lower Westchester County, and you have reason to believe your business partner may be committing fraud that puts your business at risk, we are ready to help. Allow us to investigate your situation and help you determine the best course of action moving forward. Contact our team at Rutkin & Wolf PLLC today to schedule a consultation.