Corporate Card Misuse Revealed Internal Illegal Acts, Cases of Corporate Response for Breach of Trust and Embezzlement.

Law firm Veat was commissioned by a platform service company based on big data artificial intelligence (AI) to handle criminal prosecution procedures for employees who misused the company’s corporate card for personal use, resulting in a formal indictment and guilty verdict.

In this case, the employee repeatedly made obviously personal consumption expenditures, such as shopping and travel, using the corporate card issued in the company’s name. Furthermore, an internal audit revealed that these uses were made secretly over a long period without the company’s approval.

The client company determined that this matter was not a simple internal problem but a serious case requiring criminal action and commissioned Law firm Veat for advice on specific response measures.

This case was not merely a civil damages issue but a serious matter involving criminal responsibility, requiring thorough preliminary preparation and strategic planning. Law firm Veat prepared a persuasive indictment based on legal grounds and relevant precedents, and systematically compiled supporting evidence such as corporate card usage receipts, internal emails, and approval records, and submitted them to the investigating authorities.

In particular, the employee’s actions were ▲not a simple deviation but repeated over a long period▲, and the usage records were obviously for personal consumption, yet they exhibited an attitude of avoiding responsibility, and ▲there was a growing concern about the recurrence of similar cases. Consequently, considering the client company's situation, which necessitated strict punishment to restore the organization's discipline and prevent recurrence, Law firm Veat drafted and submitted a petition for strict punishment faithfully reflecting the company’s position.

Through this series of responses, the employee was formally indicted and received a guilty verdict through trial.

Under the Criminal Code, embezzlement and breach of trust are crimes that occur when a person manages or holds another’s property and violates their trust to use the property for their own benefit. In particular, a company’s corporate card is considered part of the company’s assets, and any misuse of it without proper procedure is clearly an act of embezzlement subject to punishment.

This case is a precedent where the court clearly stated that corporate cards should only be used for business purposes and rendered a guilty verdict, demonstrating that any act of using company assets for personal use cannot be taken lightly. Furthermore, it has significance in that it has raised awareness of ethical violations within the organization and produced a preventive effect beyond simple punishment.

For a company to achieve sustainable growth, internal trust and transparent accounting management are essential. In particular, acts by employees to misappropriate company assets can lead to serious criminal offenses of ‘breach of trust’ and ‘embezzlement’ beyond simple ethical deviations.

However, many companies, even when aware of such misappropriation, are reluctant to press criminal charges due to concerns about organizational reputation, external image, or emotional burdens. Such neglect will ultimately encourage the recurrence of similar acts and long-term increase in the company’s legal risks.

Conversely, as in this case, actively responding to legal issues regarding internal illegal acts can restore organizational trust and prevent recurrence.

Law firm Veat helps companies maintain a healthy organizational culture and minimize legal risks by establishing and reviewing internal control regulations, providing legal advice on the scope of employee responsibility, and conducting legal diagnostics of high-risk areas. We provide assistance in operating compliance systems. In particular, we protect the company’s interests by providing rapid and professional responses based on preliminary reviews when problems arise.

If you require legal advice on issues such as breach of trust, embezzlement, and protecting company assets, please consider seeking legal support with corporate attorney Law firm Veat.

This case study can also be found on the Law firm Veat blog.

- Internal Illegal Acts Revealed by Corporate Card Misuse, Case of Corporate Response for Embezzlement and Breach of Trust

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Law firm Veat