Starting a Business

Can a business partner be charged with embezzlement?

My husband owns a business along with a partner whom he went to school with. The are equal partners. We have discovered this year he had a $10,000 cashiers check issued to himself from a business loan that acts as a checkings plus account. He also has approximately $40,000 in exessive business expenses that are not legitimate which consists of buying himself lunch daily, liquor, pizza, dental, parts for a non-company owned car, down payments for unauthorized company car purchases, groceries, and etc. He has also been using company funds to make a payment on his personal car or RV. He also barely shows up to work. The most he shows up to work is about 15 hours a week. HOWEVER, they did not have a very detailed share holders agreement drawn up. So my husband has nothing in writing which states specific guidelines for expense or excessive spending.
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Opinions expressed by Entrepreneur contributors are their own.
<P>Business partners absolutely can be charged with embezzlement. Embezzlement is simply a form of theft, but one perpetrated by someone who had a relationship of trust to the company. A business owner clearly applies as a person "in a relationship of trust." The use of business accounts to pay personal expenses is a common form of embezzlement. Before you fly into a rage (even if deservedly so), consult an attorney who is familiar with this area for help in the proper way to gather evidence. A false accusation can cost you even more money in a lawsuit and possibly incur defamation charges.</P>

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