Embezzlement and double-dipping affect practically every industry and type of employer in California. An individual or company can have an entire account wiped out by a professional who defrauds them. Every employer and employee should know the significance of both crimes and their legal consequences.
Embezzlement and double-dipping
Embezzlement is the misuse of funds entrusted in one’s care. It is a common white-collar crime that most people understand; however, fewer people have heard of the crime of double-dipping. This is an illegal practice that often happens when a broker handles a client’s account for a fee and charges an additional commission fee, which allows them to obtain money using two methods.
Clients can protect themselves by reviewing the terms of a broker’s fees and commissions. They should review the fine print before signing an agreement to make sure they aren’t agreeing to a double-dipping scheme that benefits their broker at their expense.
The results of financial crimes
The acts of embezzlement and double-dipping are regulated by the Securities and Exchange Commission and the Financial Industry Regulatory Authority. A broker who is convicted can be fined and barred from working in the financial industry. Clients should make sure to investigate their broker’s background before agreeing to pay for their services.
Crimes of theft
Prosecutors must prove that a level of trust was betrayed and resulted in theft. In embezzlement or double-dipping, the money that was intended for one purpose was used for another. Anyone who is charged with embezzlement or double-dipping should fully understand the charges before they attempt to put together a solid defense.