Employee Ordered to Pay $869,112 for Misappropriating Company Funds

The Employment Relations Authority (ERA) has ordered a former property management administrator to pay $869,112 in damages after being found guilty of misappropriating company funds.

The employee, responsible for managing bond payments and rental transactions, misused their position, resulting in significant financial losses for the employer. The ERA’s decision ensures the business receives compensation for the losses incurred.

In August 2020, the company became concerned when certain tenant bonds were not lodged with the Bond Centre. An internal investigation revealed that the employee had been systematically diverting tenant bond money into personal accounts. This included creating fake invoices and falsifying bond payment records to conceal the fraudulent activities.

Further investigation uncovered that the employee had used tenant bond funds to pay personal rent and had manipulated the company’s accounts over several years. The company engaged a forensic accounting firm to assess the full extent of the losses.

The forensic analysis determined the total loss from fraudulent activities amounted to $881,240.96, including bond discrepancies, fraudulent invoices, and misdirected tenant payments.

The ERA found the employee had breached their employment agreement, including their duty of good faith and obligation to manage company funds with honesty and integrity. It concluded that the employer suffered significant financial harm as a direct result of the employee’s actions.

As a result, the ERA ordered the employee to repay $869,112 plus interest to the employer.

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