Question: how to handle embezzlement
Scenario: Treasurer "invested" thousands of dollars with the intent of making interest, but did not get a vote from the board. Did not, in fact, let anyone know about it. Now he wants almost a month to get our funds back. Do you immediately contact authorities? Or do you believe that it was invested for good intentions and give him a time limit to return the funds?
Asked by Anonymous
Advice from PTO TodayRockne writes:
At the very least, I'd ask to immediately see the statements from this investment, etc. And then I'd make the proper phone calls/inquiries to make sure it's legitimate. If I didn't have those statements in 10 minutes or so, I'd be making some phone calls. I can't think of any way this could be good work by treasurer. If it's the kind of investment that is this illiquid (1 month to get unwound), then it's likely not at all right for a PTO; and it's almost certainly something that should only have been done with approval. First impression = stinks to high heaven. I wouldn't wait a month just on this person's word. Tim Tim
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