Damages Attorney's Assistance | Claiming a Large Sum in Damages Against an Employee Who Committed Embezzlement and Breach of Trust

At the client company, an employee, Mr. A, who was in charge of internal financial management duties, oversaw financial affairs as a whole, including the management of the corporate card and the corporate bank account.

One day, it was confirmed that an amount of approximately 300 million won held in the corporate account had been transferred to Mr. A's personal account.

The client asked Mr. A about the circumstances of the transfer, and Mr. A explained, to the effect that it appeared to be damage caused by a smishing crime, asserting that it was an accidental incident.

In response, the client immediately took measures to freeze the account in order to prevent further damage.

However, after subsequently examining the financial transaction records in detail, it was revealed that the transfer was not a one-off incident but rather an act of withdrawing and transferring funds carried out repeatedly over a total of 50 occasions.

The client requested the assistance of the damages attorney in order to recover the amount of the loss by filing a criminal complaint together with a parallel lawsuit for damages.

The damages attorney secured the deposit and withdrawal transaction records in order to prove the fact that Mr. A, while managing in the course of his duties the operating funds held in an account in the client's name, had transferred those funds to his own personal account.

As a result, it was possible to confirm the fact that Mr. A had withdrawn and diverted the funds by means of repeated account transfers over a total of 50 occasions, that is, acts of occupational embezzlement and breach of trust.

In addition, by specifying that each transaction had been carried out directly using Mr. A's mobile phone, it was clearly proven that this was a deliberate act of embezzlement and breach of trust committed by Mr. A alone, and not the result of the intervention of a third party or of a mistake.

As a result of the crime in this case, the client suffered serious economic difficulties as a significant gap arose in its operating funds.

The damages attorney specifically organized the fact that, due to the sudden outflow of funds, the client company was placed in a situation in which it was difficult to pay fixed costs, including employee wages, in the normal manner, and that it was even bearing late fees on some of these costs.

Accordingly, the attorney clearly emphasized the point that Mr. A bears the responsibility to pay damages for the loss arising from his tort.

The client had formed a deep relationship of trust with Mr. A over more than ten years of working together, to the extent of entrusting him with financial affairs as a whole. Even after the incident came to light, however, Mr. A has flatly denied the fact of the crime and has shown an attitude of evading responsibility.

Accordingly, the damages attorney asserted, on the basis of the following circumstances, that Mr. A's conduct was not a simple mistake or an incident caused by external factors but a clear tort that betrayed the relationship of trust with the client.

The client above filed a lawsuit for damages against an employee who had committed occupational embezzlement and breach of trust.

Occupational embezzlement refers to an act in which a person who is in a position to keep or manage another's property in the course of his or her duties betrays that trust and uses the property for private purposes or disposes of it at will.

On the other hand, occupational breach of trust means an act in which a person who handles another's affairs violates his or her duties, thereby causing himself or herself or a third party to obtain a pecuniary benefit and causing loss to the principal.

Even if the person does not directly obtain the property, the conduct may constitute breach of trust if it causes loss through a violation of duty.

Where a person commits an act of embezzlement or breach of trust by using his or her occupational position, the person may be punished as follows under Article 356 of the Criminal Act.

In order to bring a damages claim, an actual loss must arise from an unlawful act committed by the wrongdoer intentionally or negligently, and a causal relationship between that act and the loss must be recognized.

In addition, a claim for damages must be exercised within three years from the date on which the loss and the wrongdoer became known, and within ten years from the date on which the tort occurred, so a prompt response that takes the extinctive prescription into account is necessary.

If, like the client in the case above, you have suffered property loss due to occupational embezzlement and breach of trust, you may pursue a civil damages claim together with a criminal complaint.

Daeryun LLC closely reviews objective evidence such as transaction records, accounting materials, and internal documents to prove the fact of embezzlement and breach of trust, and it specifically assesses the circumstances and scope of the loss so that liability for damages can be recognized.

In addition, a corporate attorney oversees the case as a whole and collaborates organically with civil and criminal attorneys, thereby establishing a practice-oriented response strategy that takes into account the company's internal decision-making structure and its accounting and fund flows.

If you wish to file a criminal complaint and a damages lawsuit in a situation such as the one above, please feel free to request assistance through Daeryun LLC's 🔗legal consultation appointment.