Criminals must be proven guilty beyond a reasonable doubt, so evidence of guilt must be preserved to achieve a successful prosecution.
Whether the crime was perpetrated by an employee, a customer or a vendor, you should always strive to document the fraud and your investigation of it thoroughly, report it to local authorities, and urge them to prosecute.
Restitution should be a focus of the litigation as well.
There are always potential liability issues in employee investigations. Please refer to our discussions of employee discipline and terminations to avoid creating unnecessary liabilities.
The advice of counsel is recommended whenever possible, particularly if the fraud was committed by a non-employee.