Hand in the till: Embezzlement a problem that can be minimized

Prevailing wisdom among loss prevention experts is that 10 percent of the population are so honest they'll return a dime they found on a business's doorstep.

With another 10 percent, you have to watch your back pocket. Especially if they work for you.

"Eighty percent of the people, if they can take something and not get caught, they might do it," said Alan Foust of Jackson, a former theft prevention specialist. "It's human nature. You set up a business in such a way you don't provide an opportunity for people to be dishonest."

Some will grab that opportunity. They may have a gambling problem. Others fall behind on their expenses. They might "borrow" a little money to tide them over by embezzling from their employers. Maybe at first their intentions are good and they put the money back -- or mean to. Eventually they get in over their heads.

"You would be surprised how often that happens," said Cape Girardeau County Prosecuting Attorney Morley Swingle.

Swingle says his office sees about a half dozen embezzlement cases a year. He says he believes there are instances of embezzlement that go unreported.

"I think very often an employer decides just to fire the person and demand the money back," Swingle said. "It's embarrassing for employers to point out their bookkeeping practices were not sufficient to catch that person."

Swingle should know. Recently one of those cases came from his own office. An employee stole from, of all places, his crime victim restitution fund.

"It's really hard to catch them if they're sneaky," he said. "There's nothing to be embarrassed about. A crafty criminal is going to be able to get away with it for a while. Eventually they're going to get caught."

Embezzling employees who are caught should be prosecuted so they won't get another job and steal from another employer, Swingle said.

After the bank noticed a discrepancy in some checks and notified the prosecutor's office, which led to the arrest and conviction of the former employee, Swingle put some checks and balances into place. Now two employees are responsible for the fund instead of only one. He does spot checks occasionally to make sure everything balances, and periodically the crime victim advocate will make random checks with the crime victims to make sure they are indeed receiving their payments.

Businesses must have two people handling company receipts and routine audits, stated Foust.

"One person writes the checks and another person balances the checkbook," he said. "You have that and you won't have any problems."

Foust, who now works for his wife's insurance agency, says businesses can buy a rider to a business insurance policy that protects against employee theft. Not all insurance companies carry these riders, but some do. Small businesses can also hire an accounting firm to handle their books and write their checks. The cost of such a service is offset by the amount saved from potential sticky-fingered employees.

Once thieves are convicted, the judge will determine the amount of restitution as a condition of probation based on their ability to pay it back.

State Auditor Claire McCaskill released a report in March of 2001 stating that millions of dollars are owed to crime victims who may never see that money because "Missouri laws are not victim friendly."

Swingle added that in felony cases in particular, the court is more criminal-friendly because the Constitution guarantees the offender the right to confront his accuser, making the victim lose time and money away from his job by requiring him to come to court, often as many as three different times.

If the guilty party cannot make restitution in one lump sum, the judge may divide the amount to be repaid over the duration of is probation. It may not be the total amount stolen.

"The judge can't order a person, as a condition of is probation, to pay more money than the person has the means to pay," Swingle said.

Once an offender has completed his probation -- 24 months for a misdemeanor and 60 months for a felony -- any unpaid restitution money cannot be recovered. Paying full restitution, McCaskill said, is not a condition for parole in Missouri as it is in 29 other states.

McCaskill's audit also found that offenders who could afford to pay restitution often didn't. Missouri does not allow the victim to seek restitution through garnishment of wages or liens on settlements.