Is this fraud? Fraud, Embezzlement, Bad Checks

mack3 · Oct 21, 2010

I'm not sure about a situation I may be in currently (found out Monday). My CEO and a Sales Rep sold a service to a client and the client has paid half..this was agreed upon. I've found out we can't do some of what we said we could do for them and this is in the agreement and before I arrived here. I put the invoice together and included these services because I was under the impression we could. It turns out my company could never do this even though this is printed in our pricing and advertising. We have a conference call with the client today to go over this and I'm at a loss and as Support am worried. Apparently, everyone was aware of this but me, so I don't know who to trust at this 12 person company...
1) Is this fraud?
2) Am I liable?
3) Should I report this to someone?

army judge · Oct 21, 2010

mack3 said: ↑

I'm not sure about a situation I may be in currently (found out Monday). My CEO and a Sales Rep sold a service to a client and the client has paid half..this was agreed upon. I've found out we can't do some of what we said we could do for them and this is in the agreement and before I arrived here. I put the invoice together and included these services because I was under the impression we could. It turns out my company could never do this even though this is printed in our pricing and advertising. We have a conference call with the client today to go over this and I'm at a loss and as Support am worried. Apparently, everyone was aware of this but me, so I don't know who to trust at this 12 person company...
1) Is this fraud?
2) Am I liable?
3) Should I report this to someone?
Click to expand...

1) Fraud is a legal determination. If I were you, I'd be careful at bandying that term about.
2) You're an employee. If it is fraud, you had nothing to do with it.
3) If it were me, I'd keep my mouth shut. Otherwise, you'll be back on here asking if your termination was legal.

4) You didn't ask, but to follow on from number 3 above, yes, your termination would be legal.

mightymoose · Oct 21, 2010

It wouldn't be fraud unless someone in the mix had a deliberate purpose of misrepresenting the service that was sold.
Mistakes happen.
Even if not fraud there is still liability. The client made the purchase expecting a certain level of service. The sooner you correct the error (provide the service or refund the money) the less it will look like intent to defraud.

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Is this fraud? Fraud, Embezzlement, Bad Checks

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