Have Legal Questions? Ask a Lawyer Now.
Hello. Thank you for using JustAnswer.
The full answer to your question depends on what knowledge and participation the employee had of the fraudulent activity prior to resigning.
If there was some form of participation, the employee could have liability even after resigning.
However, if there was no knowledge and, upon discovery, the employee promptly resigned, there would not be direct liability for the prior fraudulent acts.
there could be liability for not reporting it even after it was discovered.
This depends on the type of business, the employees position, and the harm being done.
Thus, the employee should seriously consider reporting the activity, even though they have resigned.
What if the employee unknowingly participated in the fraudulent activity?
Filing such a report would also help insulate the employee should, upon investigation, the employer attempt to shift blame on the reporting employee.
Unless there was knowledge and intent, the employee cannot be found criminally liable.
You are welcome.
Please let me know what follow-up questions you have. If my above responses have been helpful, please click Accept so that I get credit for the time/effort. You may always restart the thread and ask follow-up questions at any time by clicking the “Reply” button at the bottom of the question/answer thread. You can access this thread later in your profile under the “My Questions” tab.
How does one prove that they didn't know that what they were doing was fraudulent?