If the treasurer of our non-profit organization has been borrowing money from the group’s account, is it still criminal if it is paid back?

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If the treasurer of our non-profit organization has been borrowing money from the group’s account, is it still criminal if it is paid back?

Checks made out to “Cash” for the past 4 months with no valid cause, totaling several hundred dollars. Now she is dragging her feet in turning the books over to her successor, and so I went to the bank and found these unexplained withdrawals, plus a recent deposit from her personal account to cover the missing money. We’re not a corporation and the money’s been replaced. So is there any criminal implication? I’m going to ask her for an explanation, and if the confrontation goes badly I want to be well armed with leverage to get her to turn over the books quietly, then go away.

Asked on May 9, 2012 under Business Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the treasurer of your non-profit has been "borrowing" money from the entity without express written permission from the entity's board of director's evidenced by a promissory note and memorialized in the minutes of the organization, the conduct is criminal.

If the treasurer repays the money "borrowed" the conduct by her is still criminal with the exception resitution was made. In any event, the treasurer engaged in bad behavior that is criminal in nature.


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