How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Irwin Law Your Own Question
Irwin Law
Irwin Law, Attorney
Category: Legal
Satisfied Customers: 6772
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
Type Your Legal Question Here...
Irwin Law is online now
A new question is answered every 9 seconds

The ex manager of our company had us buy merchandise from company

This answer was rated:

The ex manager of our company had us buy merchandise from company X through his cousins company (company A). He said that company A would only charge a small transaction fee to process our merchandise. He never wanted to order directly from company X saying its easier to go through company A. He was asked to be transparent by cc emails to company A and provide invoices from company X to company A but he never did so. We now learned that the "little transaction fee" is almost 40% more than it would be if we went direct with company X. Is what he did embezzlement?
I do not believe it meets the test of embezzlement as a criminal offense. (see:

However it is definitely an unethical practice. It also might be why he is the ex-manager of your company.

I hope that this information is helpful. Please click on a smiley face so that I will be
compensated for assisting you. If you have a follow up question please send me
back a Reply without entering any rating. Also, be sure to verify this
information with a local attorney who is familiar with your local laws and
procedures. Thanks again for using Pearl.Com- Just Answer. Your business
is appreciated.

Customer: replied 3 years ago.

What kind of legal action can be taken against him? If any.

Legal action by whom?
Customer: replied 3 years ago.

By our company.

The company might be able to sue him for breach of contract, if they have an employment contract that has clauses that create a fiduciary duty on his part to the company. You might also have a cause of action for common law (civil) fraud against the company. Fraud is a tort and you might be faced with a shorter statute of limitations than a contract suit.
I hope this Answer is helpful and that you will give it a positive rating. If you have any follow up questions please send back a Reply. You should consult a local attorney to verify that this information is accurate for your state. Thank you for using Just Answer. We appreciate your business.
Irwin Law and 8 other Legal Specialists are ready to help you

Related Legal Questions