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Employee Theft

The Charge

People accused of stealing from their employer are generally charged with theft or fraud offences pursuant to s. 322 or s. 380 of the Criminal Code. The offence is either for an amount over $5000 or under $5000. Theft from an employer is a very serious offence because it involves a breach of trust, which under s. 718 of the Code, is deemed to be an “aggravating circumstance.” A conviction for employee theft can have extremely serious consequences. Where the amount is in excess of $5000, the Crown will generally seek a jail sentence. Due to some relatively recent amendments to the Criminal Code, it is not possible for a court to impose a conditional sentence (house arrest) for a theft or fraud over $5000 offence. Because people charged with employee theft face the very real possibility of a jail sentence, it is imperative that they seek the assistance of experienced defence counsel as soon as possible.

The Investigation

Every employee theft case is different, but in the majority of cases, the scenario goes something like this:

Our client is at work and is abruptly escorted by a manager or security officer into a meeting room. There, they are confronted with an accusation that they have been stealing or otherwise misappropriating company property or funds. Because this is not yet a police investigation, the employee is not usually advised of their rights under the Charter to remain silent or to immediately be allowed to call a lawyer. It is certainly not uncommon for people in this situation to make incriminating comments. Typically, the employee is fired from their position and told that police will be contacted and the investigation will continue. It is our experience that the employer does not yet understand the scope of their loss and will therefore try hard to obtain a confession and an agreement to repay the funds.

A person facing an accusation of stealing from their employer usually faces pressure of both a criminal charge as well as a civil action taken by the employer who wants to recover their loss. Where the offence is theft or fraud over $5000 there is a very real prospect of jail. It is therefore certainly very prudent to obtain advice from a lawyer who is experienced in defending these types of charges.

Recent Successes

R. v. T.C. – Fraud Over $5000 Investigation

Charge: Fraud Over $5000.
Issue: Given the civil settlement of this $245,000 misappropriation from employer case, whether there was any interest in pursuing  a criminal investigation and prosecution.
Result: Mr. Johnson was able to negotiate a civil settlement and obtained a Final Release from the complainant. No criminal investigation occurred. No risk of jail or criminal prosecution.

R. v. Q.D.T. – Vancouver Provincial Court

Charge: Assault.
Issue: Given the rehabilitative steps we were able to guide our client through, whether it was in the public interest to continue the criminal prosecution.
Result: Mr. Gauthier was able to persuade Crown counsel to allow our client into the Alternative Measures program. Upon completion of Alternative Measures, Crown enteresd a stay of proceedings. No criminal record.

R. v. A.M. – Possession of Stolen Property Investigation – Squamish RCMP

Charge: Possession of Stolen Property (motor vehicles).
Issue: Whether there was sufficient evidence that our client was aware that the vehicles that he possessed had been obtained by the commission of crimes.
Result: Mr. Gauthier was able to steer our client through the police investigation. Ultimately, based on insufficient evidence, police declined to forward charges against our client. No prosecution. No criminal record.

R. v. S.R. – Insurance Fraud Investigation

Charge: Insurance fraud over $5000 investigation.
Issue: Given our client’s rehabilitation and repayment of disputed funds, whether it was in the public interest to proceed with a criminal prosecution.
Result: Mr. Gauthier was able to persuade the Insurance company to settle the matter on a civil basis. No criminal charges were forwarded. No criminal record.

R. v. A.B. – Vancouver Provincial Court

Charge: Break and Enter.
Issue: Given our client's mental health issues, whether a conditional discharge was an appropriate sentence for this drug store break in.
Result: Mr. Gauthier  provided Crown counsel with information about our client which persuaded Crown to make a joint submission for a conditional discharge. No jail. No criminal conviction.

R. v. M.G. – Nanaimo Provincial Court

Charges: Sexual Assault; Theft of Motor Vehicle x2; Break & Enter.
Issue: Whether or not it was in the public interest to proceed with the trial considering the reluctance oft the Crown's central witness and rehabilitative steps we were able to guide our client through.
Result: Mr. Gauthier was able to provide information to Crown counsel that ultimately led to a stay of proceedings on all counts. No criminal record.

R. v. S.G. – Port Coquitlam Provincial Court

Charges: Obstruct peace officer.
Issue: Whether it was in the public interest to continue with a criminal prosecution.
Result: Given our client's remorse and rehabilitation, Mr. Gauthier was able to persuade Crown counsel to divert our client into the Alternative Measures Program and to withdraw the charge. No criminal record.  

R. vs. A.B. – Insurance Fraud Investigation

Charge:  Fraud Under $5000.
Issue: Given our client's rehabilitation and repayment of the disputed funds, whether it was in the public interest to proceed with a criminal prosecution.
Result: Mr. Gauthier was able to persuade the insurance company to settle the matter on a civil basis. No criminal charges were forwarded. No criminal record.

R. v. S.M. – Surrey Provincial Court

Charges: Uttering Threats (domestic).
Issue: Given the circumstances of the incident and our client's background, whether it was in the public interest to proceed with the charge.
Result: Considering our client's unblemished history awaiting trial,  Mr. Gauthier was able to persuade Crown counsel to withdraw the charge. No criminal record.

R. v. M.L. – Vancouver Provincial Court

Charges: Sexual Assault; Breach of undertaking.
Issue: Whether the complaint met the Crown's charge approval standard. Whether it was in the public interest to proceed with the breach charge.
Result: Mr. Gauthier was able to provide information to Crown on our client's behalf which, ultimately, resulted in Crown not approving any charge on the sexual assault complaint and agreeing to a 12 month peace bond on the breach charge. No jail. No criminal record.

R. v. A.L. – Creston Provincial Court

Charge: Possession of a prohibited weapon for a dangerous purpose.
Issue: Given our client's background and the context of the offence, whether it was in the public interest to proceed with a criminal prosecution.
Result: Mr. Mines was able to provide information to Crown counsel that culminated in Crown's agreement to refer our client into the Alternative Measures Program. No criminal record.

R. v. S.S.M. – Vancouver Provincial Court

Charge: Assault (domestic).
Issue: Given the rehabilitative steps we were able to guide our client through, whether it was in the public interest to proceed with a criminal prosecution.
Result: Mr. Gauthier was able to provide relevant information to Crown on our client's behalf which resulted in Crown entering a stay of proceedings. No criminal record.

The Defence

We are always pleased when clients contact us immediately after being investigated for employee theft. This is because we can offer these clients the very best potential outcome – the chance of no charges being approved at all. In our many years of defending employee theft charges, we have learned that many employers are more interested in recovering their losses through civil means than they are in pursuing criminal charges. In these cases, and even in cases that have already gone to police and Crown has approved charges, our goal is to obtain a civil settlement where appropriate to do so. This entails our client repaying the employer on the employer’s promise to provide a full release from further civil liability. In many cases, civil compensation is sufficient and criminal charges are not pursued. In cases that do proceed, restitution will be considered a mitigating factor on sentencing.

In cases where Crown has approved employee theft charges, we have been successful in obtaining non-custodial sentences for our clients. For theft/fraud under $5000 cases, we have obtained conditional discharges for several of our clients. Even in theft/fraud over $5000 cases, we have obtained suspended sentences (probation) and conditional sentence orders, by persuading Crown to charge the offence as a series of theft under $5000 charges rather than a single count of theft over $5000.

Of course in some cases, in the face of strong Crown evidence, we have no alternative but to go to trial to defend our client. Often, employee theft cases are complex matters with regard to the laws of evidence. We are well versed in the various technical rules of evidence as set out in the Canada Evidence Act. These rules include various provisions that the Crown must comply with when they want to introduce business records, banking records, or other documents into the trial record. Our experience allows us to develop arguments at trial which are aimed at protecting our client’s rights to have a fair trial as guaranteed by the Charter.

Start with a free consultation.

If you are being investigated by police or if you’ve been charged with a criminal or driving offence, don’t face the problem alone. Being accused of an offence is stressful. The prospects of a criminal record or jail sentence can be daunting. Even if you think there is no defence, we may be able to help. To schedule a free initial consultation with one of our Vancouver lawyers, contact us now.