This pertains to a start-up venture with less than 1M in capital in which I am a shareholder. In short, an employee "lived" off of company funds for more than six months. He didn't receive a direct salary but rather, his boss is asserting that providing him this allowance was an alternative to paying him a salary. The employee had direct access to company funds with a debit/ATM card. This spending had nothing to do with the business but only with the employees general living expenses. To boot, a significant percentage of his spending was on alcohol as we (shareholders) now know that this individual is an alcoholic. It is apparent to me that this is fraudulent but I would appreciate a take on it from a legal perspective. Thanks.
