Legal Question in Criminal Law in California

Legal Responsiblity to Report Fraud

I uncovered an employee embezzling money from the company. This person created a phoney employee and was the payroll master and paid this person each week and then cashed the check. He used someone else's social security no. (which is being used at an insurance carrier as another name--real or phone I don't know, submitted W-2 forms for the wages for 2 years to federal government. My employers have fired the individual even though he would neither admit nor deny the crime.(The phoney employee was paid $40,000 over two and half years.) They are not going to file or report this to the police or federal government. Is this a crime also? Can I be guilt of any crime if I don't report it?


Asked on 6/17/00, 2:36 pm

1 Answer from Attorneys
Lyle Johnson Bedi and Johnson Attorneys at Law

Re: Legal Responsiblity to Report Fraud

The conduct of the fired employee, as you described it, is definitely a crime.

As a general rule you do not have a duty to report a crime. It appears that after you discovered the criminal conduct it was reported to your employer. It is your employer's decision as to whether or not to report the theft. Some employers are more interested in recovering the lost money than prosecuting the culprit.

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Answered on 8/16/00, 7:52 pm


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