Financial Equalizer Podcast - Embezzlement
Details
The financial loss is only the first wave. The second wave is the legal reckoning.
As a business owner or CFO, you need to be on top of the income and expense of your business.
Under the Caremark Standard, you have a legal obligation to ensure reporting systems exist to identify risk. Landmark court findings, like the $2.25 Million Lemington Home verdict, have proven that "blind deference" to a trusted staffer is a breach of fiduciary duty.
The court didn't care that the directors didn't steal a dime. It penalized them for being "stones growing moss" while their organization was bled dry.
If your board is simply rubber-stamping reports once a quarter, you are operating without a legal shield.
Want to learn about some of the red flags you might be missing?