Former CEO owes company money
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Former CEO owes company money
CEO was asked to leave. After new CEO took over, it was discovered that previous
CEO was taking cash rewards from Company credit cards and Airline miles from
Company credit cards. It was addressed with the former CEO who admitted this
happened he claimed it was a bank error – it was not, as you have to select
which account cash back rewards are funneled to. Anyway- he owes 372 in cash
and almost 2000 in gift cards that he said he had from the mileage on one of the
cards. He agreed to provide these back to the company since the rewards were
incurred through the company card for purchases solely for the company. He is
now avoiding all communication, will not respond to emails etc. What can we do?
Asked on April 26, 2018 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
You could sue him for the money: you would sue based on theft ( such as "conversion," a type of theft in which someone misappropriated funds under his control but which do not belong to him). However, if the company is an LLC or corporation, you would have to have a lawyer represent you in court. Unless you have a staff attorney who can do this as part of his or her job, the cost of the lawyer, which you have to pay yourself and cannot recover from the other side, would offset, and possibly exceed, the amount of money you hope to get back. It may not be economically worthwhile to pursue this.
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