Employee taking kickback
UPDATED: Oct 1, 2022
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Employee taking kickback
I have a small company with 5 employee’s. Recently, I noticed a purchase approved by one of my employee’s for an item that we in turn marked up and sold to our customer. Our customer agreed to the pricing and we provided the item and got paid. However, when I looked into the item, I discovered that while we paid $5,000 for it, I found the same item from multiple vendors for about $1,500. This got me curious as to why would we pay so much? I looked into a few more purchases approved by my employee and it seems that other purchases were extremely high and all were to one vendor. While we did pay for the items and got paid ourselves, I am under the assumption that my employee is receiving
Asked on January 16, 2019 under Business Law, Florida
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
Kickbacks are illegal: they represent a form of theft, by obtaining money to which you are not entitled through deceptive means (overcharging, then giving or getting a kickback) and/or fraud (lying about a material, or important term--e.g. price--to get the deal). You could sue the employee and vendor, since the collaborated in the theft and/or fraud, and/or file police reports for their criminal acts.
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