Company credit card misuse

Mulberry_bush

SuzieSue wrote: »

If it is a company credit card then she shouldn't be responsible for any outstanding balance if the company goes under, but she should ring up the credit card company and check whose liability it is (she obviously shouldn't tell them that she thinks the company is going to go under).

She should also tell her boss that she is no longer prepared to have the cc in her name and that she is going to cancel it and that he will need to get his own.

Who raised the potential fraud with the CEO? Was it your sister?

As long as her boss has signed all the expenses as business expenses then she doesn't need to worry. As far as she knows, all the holidays could be for meeting potential customers.

Previous FDs highlighted to CEO

Mulberry_bush

Marshflower wrote: »

She must report him asap. I don't believe for one second she is covered - hence this man is using her card and not his own. The clause of the cardholder being responsible for it's use is common to most company card agreements. And this aside, having known about the deception and not acted appropriately means she is implicated in the defraudation of company assets (I believe).
If I were her, I would gather every shred of evidence of his actions that she can lay her hands on and drop this boss like a hot potato to the powers that be, claiming she has had her suspicions for a while but didn't want to make potentially career-ruining accusations without proper proof it is only recently that she feels she has sufficient evidence.
I think given she has been told to mind her own business and butt out by this chap I think he's safe to assume he doesn't have her back and is liable to sell her up the river at a moment's notice.
She musn't take the risk and get proactive.
He is commiting fraud and while it is on her card and she knows about it, she is a part of that and liable for prosecution if caught.

I agree with you and that's my worry - she thinks she is covered because boss has signed off these expenses but she has no copies of the sign- offs as they reside in the finance dept.

tea_lover

Mulberry_bush wrote: »

She can't stop using it as her job to book flights, hotels etc

But if she knows it's being used for non-company expenses and she just carries on it really doesn't reflect well on her tbh.

She needs to officially raise her concerns with top management (which I would do by refusing to use the card anymore) and let them deal with it. Otherwise any protestations after the police etc. get involved will seem a bit hollow.

To be clear – I’m not suggesting for a moment that your sister has done anything wrong here. But she does need to take steps to cover herself from now on. Carrying on using the card won’t do her any favours if this does get taken further in the future.

Reggie_Rebel

Ask for a new card, with a new number and more imortantly new CVV.

Change the PIN and any online passwords.

Mulberry_bush

tea_lover wrote: »

But if she knows it's being used for non-company expenses and she just carries on it really doesn't reflect well on her tbh.

She needs to officially raise her concerns with top management (which I would do by refusing to use the card anymore) and let them deal with it. Otherwise any protestations after the police etc. get involved will seem a bit hollow.

To be clear – I’m not suggesting for a moment that your sister has done anything wrong here. But she does need to take steps to cover herself from now on. Carrying on using the card won’t do her any favours if this does get taken further in the future.

The matter has already been raised with the CEO many times and he has chosen to believe in this director, the ones that complained only lasted about a month then walked out as they could see how this was all going to end and wanted no part of it.

Marshflower

Mulberry_bush wrote: »

The matter has already been raised with the CEO many times and he has chosen to believe in this director, the ones that complained only lasted about a month then walked out as they could see how this was all going to end and wanted no part of it.

Ah I didn't realise she'd already raised it, sorry - reading with tired eyes.
Depending on the organisational structure of the company, it would be the CEO or the Board who initiated any sort of fraud investigation. If there is no Board and the company is run by the CEO then there is no real problem as he's chosen to turn a blind eye. If it is a very large company where your sister is employed by a branch/sub division then the issue may still hold.
In either case, I would raise the problem one more time with the CEO, in writing or email (preferable as proof of receipt easier) and keep a copy of it - something non-inflammatory along the lines of have a feeling a number of things bought on card are non-business related, concerned that card in her name and acting on instruction, could CEO confirm if this is ok or if matter needs investigation and, if possible, reference the previous times she has raised the issue (if at all).
Then, if they decide to ignore it, I would still suggest she hoarde all evidence (copies of statements with copies of diaries/calendars which tally flights and personal hols) plus I would keep any instances where the boss has requested her to buy something non-business by email and keep it all with the copy of her letter to CEO.
She primarily needs to worry about covering her own backside and this way I think she has done everything possible.
She has no worries regarding the credit card company - they couldn't care less what the money is spent on and if the company goes down they will be merely added to the list of creditors outstanding. It's the company she must worry about and being in violation of their terms of use for company credit card. If she's raised it, in writing, with the CEO and they have confirmed they do not wish to pursue the matter, she is covered.

sassyblue

Mulberry_bush wrote: »

The matter has already been raised with the CEO many times and he has chosen to believe in this director, the ones that complained only lasted about a month then walked out as they could see how this was all going to end and wanted no part of it.

Couldn't your sister get hold of the sign offs by her boss from the finance dept for her own security?

I would visit the CEO at his home away from the workplace and tell him everything l knew.

BitterAndTwisted

The CEO has been told and has shown no interest. Therefore it's implicit that the boss has use of a company credit-card as part of his remuneration package and his personal expenditure is being analysed as a business expense. If it's a private company the only parties who would be interested are the shareholders or the Revenue

Mulberry_bush

sassyblue wrote: »

Couldn't your sister get hold of the sign offs by her boss from the finance dept for her own security?

I would visit the CEO at his home away from the workplace and tell him everything l knew.

I have told her to do this but she thinks I am being melodramatic! Hence why I posted here and she can read the comments herself.

Mulberry_bush

BitterAndTwisted wrote: »

The CEO has been told and has shown no interest. Therefore it's implicit that the boss has use of a company credit-card as part of his remuneration package and his personal expenditure is being analysed as a business expense. If it's a private company the only parties who would be interested are the shareholders or the Revenue

Company is up for sale but making huge losses so don't know if there will be a buyer, co. owes about £10m to bank and its them i see being interested in carrying out audit. This boss's department has the highest expenditure and I think the auditors will go there first.