My Embezzlement Problem is Solved — My Embezzlement Suspect Quit…
Home > Media > Embezzlement Blog > My Embezzlement Problem is Solved — My Embezzlement Suspect Quit…What You'll Learn
- Why the standard $25,000 employee dishonesty insurance limit means dentists still need an independent forensic investigation to get reimbursed, even after the suspect quits or is fired.
- The four specific risks of closing the case early: an insurance claim insurers won't pay without proof, unfixed procedural weaknesses that remain open to the next dishonest employee, a possible wrong suspect while the real embezzler stays on staff, and undetected fraud committed against insurers in the practice's name.
- Why Prosperident's investigations typically wrap up in about eight weeks and are conducted discreetly, without alerting remaining staff.
- The perspective of forensic CPA and Certified Fraud Examiner David Harris, Prosperident's CEO, who has investigated dental-practice financial crime since 1989.
What You'll Learn
- Why the standard $25,000 employee dishonesty insurance limit means dentists still need an independent forensic investigation to get reimbursed, even after the suspect quits or is fired.
- The four specific risks of closing the case early: an insurance claim insurers won't pay without proof, unfixed procedural weaknesses that remain open to the next dishonest employee, a possible wrong suspect while the real embezzler stays on staff, and undetected fraud committed against insurers in the practice's name.
- Why Prosperident's investigations typically wrap up in about eight weeks and are conducted discreetly, without alerting remaining staff.
- The perspective of forensic CPA and Certified Fraud Examiner David Harris, Prosperident's CEO, who has investigated dental-practice financial crime since 1989.
My Embezzlement Problem is Solved — My Embezzlement Suspect Quit…
Occasionally, a dentist calls us to say that he or she found an employee stealing who was fired or quit and that, because the suspect quit, the dentist believes that the “door is closed” on this matter, and no further action is required.
Are they right about this?
Not necessarily.
Although the departure of this employee will (hopefully) end the embezzlement, there are still several reasons why a proper investigation will make sense.
-
Most practices have some amount of insurance coverage for employee dishonesty. The most common coverage amount we see is $25,000. Accessing this insurance requires you to determine the amount you lost. And the insurance companies want this determination made by an outside expert, not the practice owner. This financial recovery is fairly easy to get if you follow the right steps, and the fact that the suspect quit does not change your ability to make a claim.
-
Although the suspect quit, whatever weaknesses in your systems were exploited by the embezzler still exist, and are available to the next thief. By not having an investigation, you lose the chance to learn and protect yourself in the future.
-
It is always possible that you were right about being embezzled, but had misidentified the perpetrator. In this case, you still have a thief in your office, but believe that the problem has solved itself. Complacency is the IDEAL climate for embezzlement.
-
There are two ways for an embezzler to steal — many embezzlers steal from you; others use your practice to steal from insurance companies. Not identifying money stolen from insurance companies (using your name) tends to migrate you in the eyes of the insurance companies from co-victim to perpetrator. And I probably don’t need to explain why having a large company with deep pockets and little tolerance for fraud mad at you is a bad idea.
Our investigations are normally completed fairly quickly (typically taking eight weeks or so) and are done stealthily, so that practice staff do not know that an examination is taking place. If the suspect quit, it is no harder for us to investigate.
The possibility of being an embezzlement victim is a very unpleasant one for most dentists, and the desire to have the problem simply disappear is an appealing one. However, ignoring the problem (or believing it has taken care of itself) can cost the practice financially and leave it exposed to considerable dangers.
If you think you have been an embezzlement victim, we are happy to have a no-obligation conversation with you about your options.
Have questions about your practice? Click the button below
The Suspect Left—But the Embezzlement Didn't.
A resignation doesn't erase what was stolen. Prosperident can quantify your losses, document the evidence, and help you pursue recovery—even after the employee is gone.
Concerned about embezzlement in your practice?
Prosperident is dentistry’s embezzlement expert. Talk to us confidentially — there’s no obligation.
Occasionally, a dentist calls us to say that he or she found an employee stealing who was fired or quit and that, because the suspect quit, the dentist believes that the “door is closed” on this matter, and no further action is required.
Are they right about this?
Not necessarily.
Although the departure of this employee will (hopefully) end the embezzlement, there are still several reasons why a proper investigation will make sense.
-
Most practices have some amount of insurance coverage for employee dishonesty. The most common coverage amount we see is $25,000. Accessing this insurance requires you to determine the amount you lost. And the insurance companies want this determination made by an outside expert, not the practice owner. This financial recovery is fairly easy to get if you follow the right steps, and the fact that the suspect quit does not change your ability to make a claim.
-
Although the suspect quit, whatever weaknesses in your systems were exploited by the embezzler still exist, and are available to the next thief. By not having an investigation, you lose the chance to learn and protect yourself in the future.
-
It is always possible that you were right about being embezzled, but had misidentified the perpetrator. In this case, you still have a thief in your office, but believe that the problem has solved itself. Complacency is the IDEAL climate for embezzlement.
-
There are two ways for an embezzler to steal — many embezzlers steal from you; others use your practice to steal from insurance companies. Not identifying money stolen from insurance companies (using your name) tends to migrate you in the eyes of the insurance companies from co-victim to perpetrator. And I probably don’t need to explain why having a large company with deep pockets and little tolerance for fraud mad at you is a bad idea.
Our investigations are normally completed fairly quickly (typically taking eight weeks or so) and are done stealthily, so that practice staff do not know that an examination is taking place. If the suspect quit, it is no harder for us to investigate.
The possibility of being an embezzlement victim is a very unpleasant one for most dentists, and the desire to have the problem simply disappear is an appealing one. However, ignoring the problem (or believing it has taken care of itself) can cost the practice financially and leave it exposed to considerable dangers.
If you think you have been an embezzlement victim, we are happy to have a no-obligation conversation with you about your options.
Have questions about your practice? Click the button below
The Suspect Left—But the Embezzlement Didn't.
A resignation doesn't erase what was stolen. Prosperident can quantify your losses, document the evidence, and help you pursue recovery—even after the employee is gone.
About the author
David Harris
Forensic CPA, CFE, CFF, FIADFE — Chief Executive Officer, Prosperident
David Harris is the Chief Executive Officer of Prosperident, the world's largest dental embezzlement investigation firm. A Forensic CPA, Certified Fraud Examiner, and Certified in Financial Forensics, he has led investigations into financial crime in dental practices since 1989 and speaks regularly to dental audiences across North America on detecting and preventing embezzlement.
Book a consultation with David ›