Labor/Employment,
Business Law
Nov. 5, 2025
From discovery to recovery: A legal roadmap for employee embezzlement cases
In California, employers facing employee embezzlement can often recover stolen funds by acting quickly with discreet investigations, civil remedies like temporary restraining orders or writs of attachment, and, when appropriate, reporting the theft to law enforcement to preserve assets and pursue restitution.
William E. Johnston
Partner
Bird, Marella, Rhow, Lincenberg, Drooks & Nessim, LLP
Johnston previously served in the Fraud Section of the Criminal Division of the U.S. Department of Justice in Washington, D.C. He was the supervising prosecutor on hundreds of fraud cases across the country in various industries, including the technology sector, financial services, healthcare and government programs. In his role as Assistant Chief, Johnston oversaw many of the Fraud Section's enforcement programs, coordinating closely with the SEC, FTC, and the FDIC Office of the Inspector General.
Employee embezzlement remains a persistent and costly threat to California businesses. By the time such theft is uncovered -- let alone prosecuted -- the monies are often long gone, spent on shopping sprees, vacations or gambling. Companies are frequently left with little recourse beyond filing an insurance claim, or, in the absence of coverage, absorbing the financial loss themselves.
Yet it would be a mistake to assume that recovery is always futile. W...
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