An article in October caught our eye, since it relates directly on what we talk about with our members and trainees, something I try to hit every class, and that is ‘how much you can trust your employees and partners’.
In the article, a businessman found out his CFO was stealing. He only lost one of his operations over that.
- Several years ago, long time California auto dealer, Cal Worthington, learned two employees stole a hefty sum to feed a Vegas gambling habit.
- In 206, a CFO for a luxury car dealership in Florida was caught stealing also to pay off gambling losses. The CFO rejected the owner’s offer to hire help with the accounting and an independent audit revealed the theft.
- In Queens, New York, the FBIs is investigating a theft ring involving at least businesses. Managers at the stores (different owners) were sending products to a gang who would steal them. The product was then going to the Dominican Republic. This scheme was exposed when a NYC police officer killed when he stumbled upon a theft in process.
Our member had a partner, in business with him for over 10 years, clean him out. Trust & Verify. That’s the key. Make sure employees and partners know what at least some of the checks and balances are you are using. No checks and balances at all? That’s a recipe for disaster. If you are afraid of hurt feelings because you are good friends with your employees or partners, you are not operating correctly. If they’re such good friends, if they are valuable employees and partners, they will understand the necessity for the checks and balances in a business. If they don’t, they need to deal with it. You are responsible for your own business, and to your family and other employees to stay in business and not let somebody steal it all from you. Need ideas on what to do? Call your association and talk with your staff.