Dental Embezzlement Do’s and Don’ts
“The advice below is intended for dental practice owners when they are first confronted by the real or likely probability they have been embezzled. (i.e.: when the practice owner ‘suspects’ or has “reasonable cause” to believe that embezzlement has occurred)”
Bill Hiltz BSc MBA CET
DO NOT – CONTACT THE POLICE
Do not contact the police based on a suspicion or without tangible evidence.
Police departments will generally not allocate resources to investigate dental embezzlement. An exception to this is when the suspected employee has a previous conviction for fraud or embezzlement.
In most cases, police and prosecutors will only act when the dentist provides them with clear and compelling evidence that a financial crime was committed. (i.e.: a forensic audit report)
Police departments will generally not allocate resources to investigate dental embezzlement. An exception to this is when the suspected employee has a previous conviction for fraud or embezzlement.
In most cases, police and prosecutors will only act when the dentist provides them with clear and compelling evidence that a financial crime was committed. (i.e.: a forensic audit report)
DO NOT – INSTALL CAMERAS IN THE OFFICE
Do not install cameras at this time.
If your hunch is correct, then installing cameras will arouse the employee’s suspicion.
This will cause a change work behavior, and increased efforts to conceal their crime. (i.e.: destruction of electronic records and removal of physical records)
If your hunch is correct, then installing cameras will arouse the employee’s suspicion.
This will cause a change work behavior, and increased efforts to conceal their crime. (i.e.: destruction of electronic records and removal of physical records)
DO NOT – FIRE THE SUSPECT FOR STEALING
Terminating employment based on a suspicion can result in an employment lawsuit and a severance obligation.
Do not fire an employee on a hunch.
You need to establish clear and compelling evidence before firing an employee for stealing
Do not fire an employee on a hunch.
You need to establish clear and compelling evidence before firing an employee for stealing
DO NOT – CONFRONT THE EMPLOYEE
Don’t confront anyone you suspect of committing fraud until you have proof to back it up.
Doing so may expose you to legal difficulties such as defamation and wrongful termination. Delaying termination until you have enough evidence reduces severance-related liability risks.
Doing so may expose you to legal difficulties such as defamation and wrongful termination. Delaying termination until you have enough evidence reduces severance-related liability risks.
DO NOT – START ASKING EMPLOYEES QUESTIONS
Don’t start asking unusual questions or request reports that you otherwise overlooked.
Do not bring a fraud examiner or forensic accountant into the practice during business hours. Under no circumstances should they call your office.
Do not bring a fraud examiner or forensic accountant into the practice during business hours. Under no circumstances should they call your office.
DO – BACKUP YOUR DATA
Make a complete backup of your data and take it offsite.
At a minimum, backup employee emails, dental software, server logs.
At a minimum, backup employee emails, dental software, server logs.
DO – REVIEW YOUR BUSINESS OWNERS POLICY
Check to see if you have Crime Insurance
If yes, then you may be covered for certain losses as a result of employee theft.
Do not contact your Insurer until you have established the amount of theft.
If yes, then you may be covered for certain losses as a result of employee theft.
Do not contact your Insurer until you have established the amount of theft.
DO – INVESTIGATE YOUR SUSPICIONS
(1) Take the Dental Embezzlement Red Flag Self Assessment
(2) Call or Schedule a no-charge consult with William Hiltz
(2) Call or Schedule a no-charge consult with William Hiltz
DO – SEEK PROFESSIONAL ADVICE
Call or Schedule a no-charge consult with Hiltz and Associates
William Hiltz BSc MBA CET
Hiltz & Associates
Insight • Diligence • Assurance
Office: 201-503-3742
Cell: 201-467-4987
Fax: 855-440-8624
https://hiltzandassociates.com
https://dentalfraudbusters.com
William Hiltz BSc MBA CET
Hiltz & Associates
Insight • Diligence • Assurance
Office: 201-503-3742
Cell: 201-467-4987
Fax: 855-440-8624
https://hiltzandassociates.com
https://dentalfraudbusters.com
