We all know the old saying: If something sounds too good to be true, it
probably is. But these are hard economic times, and if you're a business
owner and that something is a scheme claiming it can put dollars in
your pocket, you may be tempted to bite.
The two types of business fraud below are the most common scams
targeting small business owners in 2009. The best way to avoid being
victimized by business fraud? Retain the services of an experienced
fraud lawyer or business lawyer, and check with him or her about your
business on a regular basis or before you sink your hard earned cash
into any proposition.
Internal Business Fraud
When times are tough, small businesses look for ways to cut back on
spending. Unfortunately some of their cost-cutting measures turn out to
be false economies. Among these are the annual auditing procedures that
may often be an owner's first clue that something fishy's going on with
the accounts receivable. Owners may also cut back on background checks
for new hires, and end up with employees whose probity is questionable.
Inventory fraud is widely practiced by unscrupulous employees.
Embezzlement of actual funds is less common, but still can be a
staggering blow since often the embezzler is a long-time employee who
the owner has grown to trust.
Phony Grants
The $787 billion stimulus plan passed by Congress in early 2009 spurred
an entire industry claiming that in addition to federal spending and
tax cuts designed to jumpstart the economy, the package contained
millions of dollars worth of grants for small business owners - if they
only find them. Ads for companies that guaranteed to hook small
businesses up with free money began proliferating on the radio and
Internet. Of course they were asking for their own money up front - and
some small business owners found themselves hustled out of thousands of
dollars.
Here's the inside scoop on government grants: they mostly go to
nonprofits or science and technology companies. While a few government
grant opportunities do exist for plucky entrepreneurs, they are the
exception not the rule - and you can track them down yourself merely by
pointing your browser to www.grants.gov.
Why You Need An Experienced business lawyer
Developing an ongoing relationship with an experienced fraud lawyer
means you have a sage advisor at your side who can spot the red flags
when you are too busy or emotionally invested to spot them yourself.
