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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. vs. A.J. – Insurance Fraud Investigation

Charges: Fraud Over $5,000 Investigation.
Issue: Given that we were able to negotiate a civil settlement of this $13,000 insurance claim overpayment, whether it was in the public interest to proceed with a criminal prosecution.
Result: Mr. Mines was able to negotiate a settlement of the alleged fraudulent claim. We obtained a full Release, ending the matter in both the civil and criminal context. No further liability. No criminal charges.

R. vs. M.M. – New Westminster Police Investigation

Charge: Sexual Assault Investigation.
Issue: Whether there was sufficient evidence for police to recommend that criminal charges be approved.
Result: Mr. Gauthier was able to guide our client through the police investigation, and to provide police with information on our client's behalf. Ultimately, police decided not to forward any charge to Crow. No charges approved. No criminal record.

R. vs. C.T. – Insurance Fraud Investigation

Charges: Fraud Under $5,000
Issue: Given our client's repayment of the alleged fraudulent health insurance benefits, whether it was in the public interest to proceed with criminal charges.
Result: Mr. Gauthier was able to settle the matter civilly on our client's behalf without any further civil or criminal proceeding. No charges were approved.

R. vs. A.S. – Port Coquitlam Provincial Court

Charges: Assault (domestic) Reduced to Peace Bond.
Issue: Given the rehabilitative steps we were able to guide our client through, whether it was in the public interest to continue with the criminal prosecution.
Result: Mr. Mines was able to steer our client through a course of rehabilitation and persuaded Crown to stay the assault charge and to allow our client to enter into a Peace Bond.

R. vs. G.V. – Vancouver Provincial Court

Charges: Assault; Uttering Threats.
Issue: Whether there was sufficient evidence for criminal charges to be approved.
Result: Mr. Mines was able to provide Crown counsel with additional information and persuaded Crown that it was not in the public interest to proceed with any criminal charges.

R. vs. M.H.E. – Abbotsford Provincial Court

Charges: Assault.
Issue: Whether it was in the public interest to proceed with a criminal prosecution.
Result: Mr. Mines was able to provide information to Crown counsel regarding our client's circumstances and was able to persuade Crown that there was no public interest in proceeding with a criminal prosecution. No criminal record.

R. vs. E.C. – Vancouver Provincial Court

Charges: Sexual Assault; Assault.
Issue: Given the rehabilitative steps we guided our client through, the nature of the sex assault itself and our client's true remorse, whether a jail sentence or house arrest were required.
Result: Mr. Mines was able to persuade Crown counsel to make a joint submission for a conditional discharge. After hearing Mr. Mines' submissions on our client's behalf, the trial judge granted our client the discharge. No jail or house arrest. No criminal conviction.

R. vs. N. O. – Courtenay Provincial Court

Charges: Assault Causing Bodily Harm x2; Assault x3.
Issues: Whether there was a substantial likelihood of a conviction.
Result: Mr. Gauthier was able to provide information to Crown counsel which cast the complainant's credibility and reliability into doubt. The Crown made an adjournment application which Mr. Gauthier opposed. Mr. Gauthier was able to persuade Crown to stay all of the criminal charges upon our client entering into a Peace Bond. No jail; No criminal record.

R. v. K.T. – Insurance Fraud Investigation

Charges: Fraud Under $5000.
Issue: Given our client's repayment of the alleged fraudulent health insurance benefit claims, whether it was in the public interest to proceed with criminal charges.
Result: Mr. Mines was able settle the matter on our client's behalf and received a Release from the insurer ending the matter without any further civil or criminal proceeding. No charges were approved.

R. vs. A.H. – Vancouver Supreme Court

Charges: Sentence Appeal - Forcible entry; Assault with a weapon.
Issue: Whether the Supreme Court would uphold our client's conditional discharge that was granted to our client by the Provincial Court.
Result: After hearing Mr. Gauthier's submissions on this sentence appeal, the Supreme Court justice agreed with Mr. Gautier and ruled that the sentence was appropriate in all the circumstances. The court dismissed the Crown's appeal. The conditional discharge was upheld.

R. v. J.F. – Dawson Creek Provincial Court

Charge: Sexual Assault.
Issue: The credibility of the complainant's testimony during this three day trial.
Result: After vigorous cross examination of the complainant and another Crown eyewitness, Mr. Gauthier made submissions which were accepted by the trial judge. The court found our client to be not guilty and aquitted him of the charge. No jail. No criminal record.

R. vs. D.C. – Port Coquitlam Provincial Court

Charges: Sexual Assault (x2).
Issue: In the circumstances of these historic charges and our client's rehabilitation, whether a community based sentence was appropriate.
Result: Notwithstanding that Crown counsel sought a 20 month jail sentence, the trial judge agreed with Mr. Mines' submission that, in the circumstances of our client's genuine remorse and rehabilitation, it was appropriate to  grant a conditional sentence of 21 months. No jail.

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.