At long last I found the deed

At long last I found the deed.

Having owned the business for nearly 20 years we thought we had a good handle on everything that was going on within that realm. Over time we had lapsed in diligence maybe, allowing employees to do their tasks in the comfort of their own job descriptions without much interference or even supervision. They are all responsible adults, and have given no cause for us to doubt their honesty or integrity. At that near 20 year mark a family members business crash made us sit up and take notice. We were at that point given fair warning that all that seems to be well, may not be so well under the surface.

Books were scrutinized, questions asked, CPA queried to no avail. All seemed to be in order, and operations were status quo. While the investigation continued as a matter of daily routine, there appeared to be no indication of misappropriation of funds whatsoever. The employee designated to manage the business took his job seriously, it seemed. He preferred to be left to do his job without interference from the Boss. He had performed his tasks and presented his work as superior in every way. He achieved recognition from the parent company in sales and said he was favored as one with knowledge and expertise in the field. And he also required a good bit of “stroking and petting”, look and see what I’ve done for you!!! The office walls displayed his accomplishments for all to see, plaques with his name and rank in gold. Proudly polished and displayed to be noticed.

After the 20 year mark it seemed our star employee seemed to benefit less from the usual applause for his good work. He became more verbal about his dissatisfaction with his working conditions, his co workers, his customers, his benefits, in general, his job. Threats to quit were voiced on a regular basis, countered with little objection from those working with him. He was becoming more and more aloof from the rest of the staff, keeping his distance, yet spending long hours at work, away from his family. His attachment to our extended family, once seemed to be close, was noted to be estranged and strained. His kingdom was falling apart. Like a festering boil, pustulent matter lay just beneath the surface ready to erupt at a moments notice. When his moment came, his kingdom crashed.

For several years offers to buy the business came and went mostly without notice. We discussed with our manager those possibilities, offering him first bid when the time came. His refusal to purchase the business persisted, based on his report that his wife had reservations about that big a debt, until the time the sale was imminent. A potential buyer was prepared and eager to step up to the plate and run with the ball. And after evaluating the financial condition of it, having observed percentage of growth the past 2 years had declined, it seemed time to do just that. As preparations were made the prospective buyer requested a ride along to learn the ins and outs of customer care. It was on one such visit a discovery was made. When the service was completed, the customer presented the manager with 2 checks, one for our business, one for the manager. The prospective buyer did not fail to notice obvious embarrassment as the manager attempted to accept the checks without being busted. Red flag number one.

Negotiations were concluded, papers were signed and we were suddenly The Previous Owners. To reassure the work force, immediately following the signing, the new owner met with each employee individually to discuss issues important to them, job security, pay scale, and benefits. Each one reported a pleasant conference, and agreement with the new arrangements. All but the manager. His response was what had been threatened but not carried out until the new owner took possession. He terminated his employment. He had announced previously he had a number of job offers, he was just waiting to see how things turned out. Apparently the conditions were not to his liking, and had not been to his benefit.

His final contact with us was to reveal his “real” reason for leaving. He was working himself out of a job, he said. His perception of the conditions of the new owner was one of diminished income and benefits and he was unable to continue employment. His wife had encouraged him to approach us with the details of his departure, so we would understand fully his reasons for leaving. As he spoke I recorded his concerns. It was understood by our buyer that job security for our employees was an important part of our transaction. The intention was to honor that agreement. And the conversations with the other employees showed that to be true. His allegations were discussed and refuted by the new owner.

In the weeks that have passed since we stepped down from our ownership some interesting events have shaken loose from their hiding places. Invoices with payments made personally to our former manager, reduced rent to “special” customers, payments made separately to our business and to him personally for the same service call and who knows how many other little departures from integrity and honesty await to be revealed. All these revelations have been a shock to us, yet, looking back now things are beginning to add up. But still, that doesn’t account for the distinct decline in growth percentage we had observed. Evidence is now coming to light revealing the mode of his operation. Stored, used rental units, repaired and made useable again, could be returned to the service force easily undetected. Presented as a less expensive alternative to our purchase offer or rental prices, any less than our rate would be a good deal to a trusting customer, and free money in our former employee’s pocket. It was a good plan for him and it apparently worked well for a while. Until the buyer of our business wanted to observe how the business worked. It was a difficult day, and our managers realm was closing in on him, quickly and surely coming to an end. The festering boil was about to erupt. The only way to save face, not have to reveal dishonesty and avoid taking responsibility for business going awry was to quickly save face and blame someone else for the developing problems. Quick thinking and self preserving man that he is, the story enfolds.

Recognition for his hard work and effort to keep things flowing without trouble was not in sufficient quantity to reassure this simple and immature being that his value and worth was established. His voice was too loud his declaration of competence and might too frequent to depict a man of real confidence in his abilities and skill. He is a little man, in truth. And not a man of truth. His whole being, his spirit and soul are not what he wants the world to know. The facade he shows is an empty shell, deceit and immorality, are but 2 of the stones that build that wall around him.

He has moved on to new territory now. A new employer to deceive. New customers to entwine in his web of falsehood and mistaken charm. It worked once it will work again. It won’t take so long to build the cash flow base this time, experience is on his side. His cheerful acceptance of long work days, proud declarations of expertise and skill, loud explanations of complicated but successful sales will fill the ears of his new audience. Beware the thief that comes wearing familiar outward appearances. They conceal inner motives not meant to benefit any but him. He knows no true friend, because his view is inward, always inward. Long work days leave the workplace available and open for his devices, unsupervised and unattended, he works best. A business within a business. He can pull it off again, just as soon as his new boss makes him the Manager, gives responsibilities and turns over more and more duties in trust and confidence. His most finely tuned skill...presenting himself as necessary and very important to the well being of the business.

At long last I found the deed,

the deed was embezzlement, and it hurts to be the victim, it hurts to be victimized by someone once trusted with our financial future. It hurts to know that our reputation has been laid on the line, we have been set up as having caused difficulties for this employee to do his job. It hurts to know we are capable of trusting wrong people. It hurts to fear trusting again. It hurts to know our customers were deceived, they thought they were paying the owner, and he did nothing to alter that misconception. It hurts to see a man that could be great fall into a great pit of poverty of conscience.

I found the deed, now, what do I do with it?