Do you suspect your business partner of stealing?

| Mar 1, 2021 | Business Law |

Partnerships are a common way that entrepreneurs in New York start companies. The structure has a lot of benefits. All the partners involved have a stake in the business. They bring different needed skills to the table, whereas a sole proprietor must be totally self-reliant. Often, a partnership works out well for everyone involved. But unfortunately, it’s not unusual for one partner to steal from the company. There are some important things business people need to know about theft by a partner.

Kinds of theft

The most obvious form of stealing from a business is to take cash or physical assets. Theft by fraud means taking resources under the guise of using them for business but using them for personal reasons instead. Intellectual property theft, or taking trade secrets and plans for the future without authorization, can be devastating for a commercial enterprise.

Preventing theft

It’s a good idea for a company to have checks and balances in place when it comes to financial matters. When one person controls the finances, it’s much easier to embezzle money. Using security devices like locks, alarms and cameras can make a big difference when it comes to preventing physical theft.

If you suspect theft

Often, thieves will steal on more than one occasion. They may start small and proceed to take more over time. This means their actions will follow a pattern. If you observe a pattern that concerns you, implement tighter controls. Calling a lawyer would also be advisable.

A lawyer who understands business and commercial law is likely to have experience with partner theft. They may be able to provide advice about what kinds of evidence to collect. You can also consult with them about how to handle the problem and whether to settle privately or prosecute.