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What fraudulent schemes of employees may affect the head of the company

Legislative fraud is the theft of another’s property or the acquisition of a right to it through fraud or breach of trust, which can be committed using an official position.

The criminal liability for fraud lies with the one who committed it. If an employee of the company turns out to be a fraudster, then it will be he who is responsible. Nevertheless, there are certain legal risks in the field of civil and disciplinary liability for the head of the company, especially in situations where the counterparty suffered losses due to fraudulent actions of its employees. In this case, the situation can be played out as follows.

The counterparty suffers financial losses and goes to court with a lawsuit against the company, as a result, collects them in accordance with civil law. If the company does not have funds in the accounts, the counterparty may apply to the court with a petition for declaring the company bankrupt and receive damages from its property. If the business does not have property, then the counterparty can apply to the court with a statement on bringing the head of the company to subsidiary liability in accordance with the legislation on insolvency (bankruptcy), since it was the head who was responsible for the financial and economic activities of the company for a significant period. In this case, the debt may be recovered from it at the expense of personal property and property acquired in marriage.

To illustrate this statement, the following example can be given: employees of a construction company-contractor, acting on fake documents, purchased materials in a construction hypermarket. At the same time, they purchased them for personal use instead of delivering it to the construction site of the contracting customer. At the same time, the customer paid for these materials in full according to the documents submitted by the contractor. In fact – the counterparty suffers losses that may be opened later with the corresponding consequences.

The prospect of disciplinary liability for the head of the company may consist in the application of disciplinary measures by its founders (participants) to the head, up to dismissal in accordance with labor legislation for the lack of proper control over the financial and economic activities of the company. Its absence in this case will be expressed in the assumption of a situation where company employees steal property belonging to it, including cash, causing losses to the company.

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To illustrate this statement, one can cite the following example: accounting and personnel officers, acting in collusion, fictitiously apply for work for their relatives, receive salary cards in their name at a commercial bank and use the cards at their discretion, paying for them, for example, in online stores. The head of the company at the same time signs all related personnel and financial documents. As a result, the company suffers losses.

You can also give another example: employees of a company involved in the delivery of goods subject to dismissal steal a customer base, the protection of which was not organized by the head of the company at the proper level. Then, former employees create a fictitious company with a similar name, send commercial offers on behalf of this company to customers with a substantial discount on the goods and indicate that payment must be made to the newly created holding structure (fictitious company). After paying for the goods to a fictitious company, the money is scammed by scammers. Clients receive complaints about this company not receiving the paid goods, with the corresponding consequences. As a result, the company suffers losses.

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