Two ex-employees of American sandwich chain Jimmy John’s are accused of perpetrating fraud to the tune of $100,000 in an embezzlement scheme at the company’s outlet in Sunset Hills.
Brian Krebs, who worked earlier at The Washington Post narrated the incident in his blog earlier this week. As per the details mentioned in the blog the two employees ended up with cash by not registering transactions in the company’s system through receipts.
Customers of the company did not receive receipts from the accused employees which led to the transactions being concealed from the management.
There was no official response yet from the management team at the Jimmy John’s Sunset Hills outlet. The Sunset Hills Police Department confirmed that the restaurant has registered a police report officially over theft at the restaurant. They did not reveal more information other than this about the case and it is not certain if criminal charges will be filed.
Policies to avoid Employee Theft
I’m sure you might have noticed a sign while your visit to any random fast-casual dining restaurant informing their customers that their next meal is free provided they don’t receive a bill. These policies are in place to avoid employee theft.
The intention behind this move is to force employees to record all sales and create a transaction in the company’s systems. It also incentivizes customers visiting the establishment by reporting when they are in non-receipt of the bill for their food.
There is the possibility that employees might conceal transactions by canceling them just before they are completed. The employee gives the customer their food and then pockets the rest.
Scam Unearthed by the Owner
Steve Saladin, the owner of the store started suspecting something fishy when they took over the Monday and Tuesday shifts for the couple. The cash receipts for those two days were substantially higher compared to the earlier reported amount.
Saladin was forced to shut down the stores last week and sack the husband-and-wife managers for embezzlement of approximately $100,000 in cash payments from customers.
“One of [the managers] would take an order at the drive-thru, and when they determined the customer was going to pay with cash the other would make the customer’s change for it, but then delete the order before the system could complete it and print a receipt,” Saladin said.
Saladin further informed that his attorneys along with local law enforcement officials are involved in this matter and he estimates the former employees stole around $100,000 in cash receipts.
He also paid approximately $115,000 in salaries each year to the two employees.
IRS Federal Law
According to an investigator with the criminal division of the U.S. Internal Revenue Service (IRS), “The IRS is obligated to investigate all notifications it receives from employers about unreported income, but embezzling victims often neglect to even notify the agency.”
According to the IRS federal law, anyone convicted of embezzlement of funds or evading or defeating taxes can be charged with a felony and could face not only just monetary penalties up to hundreds of thousands of dollars in fines but also many years in prison.
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