What to Do When Your Business Partner Is Stealing from the Company

Business partner theft takes many forms, including embezzlement of company funds, misappropriation of assets, unauthorized personal expenses charged to the business, diversion of corporate opportunities, and fraudulent financial reporting that conceals misconduct. Discovering that your business partner has stolen from your company creates an urgent situation requiring immediate legal intervention to stop ongoing theft, recover misappropriated assets, and protect your business interests.

When you suspect or confirm partner theft, working with our experienced legal counsel helps you respond strategically while preserving evidence and maximizing recovery options. At Murrah & Killough, PLLC, we can evaluate your situation and develop an effective response plan.

What to Do When Your Business Partner Is Stealing from the Company

Knowing what to do when your business partner is stealing from the company requires careful planning and strategic action to protect your interests while gathering evidence supporting legal claims. Taking the right steps immediately after discovering theft strengthens your legal position. It prevents your partner from hiding assets or destroying documentation.

Do Not Confront Your Partner

Don’t confront your partner about suspected theft until you’ve consulted an attorney and planned a strategy. Premature confrontation can lead them to hide evidence or move assets. Keeping your discovery confidential protects your case and preserves legal options.

Document Everything

Create detailed notes about suspicious activities, conversations, or behaviors that suggest misconduct, including dates, times, amounts, and circumstances surrounding each incident. Collect and preserve all evidence of theft, including bank statements, credit card records, invoices, receipts, financial reports, emails, text messages, and any other documentation showing unauthorized transactions or misappropriation.

Consult a Houston Business Lawyer Immediately

Contact our experienced business attorneys as soon as you suspect partner theft to discuss your options and develop a plan of action. Early legal guidance helps you avoid mistakes that could undermine your case, ensures you take appropriate steps to protect assets, and allows your attorney to begin investigating while evidence remains fresh and accessible.

Our attorneys can also advise you about reporting obligations and coordinate with forensic accountants or other experts who may need to examine financial records. Trust your legal counsel’s judgment about timing, approach, and which remedies to pursue based on your specific circumstances.

How a Business Lawyer Helps Protect Your Business

Our attorneys employ various legal tools and strategies to stop ongoing theft, recover misappropriated funds, and hold dishonest partners accountable. Professional representation ensures you pursue all available remedies while complying with legal requirements and procedural rules.

Cut Off Access to Company Funds

Texas Business Organizations Code Section 152.205 addresses partner authority and may support your actions to restrict access when protecting company assets from misappropriation. Protecting assets requires swift action:

• Revoking your partner’s access to the bank account.
• Changing account signatories.
• Canceling credit cards.
• Implementing new financial controls.
• Notifying banks about suspected fraud.

Seek Emergency Court Orders

Our business theft attorneys at Murrah & Killough, PLLC, can seek emergency court orders preventing your partner from accessing company assets, transferring property, or destroying evidence while litigation is pending. Temporary restraining orders provide immediate protection, typically within 24 hours, while preliminary injunctions offer longer-term protection of assets until courts resolve the underlying disputes. These remedies prevent partners from dissipating assets or hiding stolen funds during the litigation process.

Preserve Evidence

We use the legal discovery process to obtain documents, testimony, and other evidence your partner controls. Discovery tools include:

• Interrogatories requiring written answers under oath.
• Requests for production of documents and electronic records.
• Depositions capturing sworn testimony.
• Subpoenas to banks and third parties.
• Forensic examination of computers and digital devices.
• Requests for admission establishing undisputed facts.

Take Legal Action

Lawyers can negotiate settlements requiring partners to return stolen funds or pursue civil lawsuits asserting claims for fraud, civil theft under Texas Civil Practice and Remedies Code Section 134.003, embezzlement, or breach of fiduciary duty. Successful litigation may allow recovery of:

• Actual damages equal to the stolen amounts.
• Treble damages for statutory theft claims.
• Punitive damages for intentional misconduct.
• Attorney’s fees and litigation costs
• Prejudgment and post-judgment interest.
• Equitable relief, including disgorgement of profits.

Dissolve the Partnership

Our attorneys can pursue partnership dissolution when theft destroys the trust necessary for continued business relationships.  Dissolution proceedings address asset division, debt allocation, and buyout terms while ensuring you receive fair compensation for your ownership interest.Courts may order dissolution when partners breach their fiduciary duties or engage in conduct that makes the continuation of the partnership impracticable.

File Derivative Action

For corporations and LLCs, our business litigation attorneys can file derivative actions to recover losses from partner misconduct. These suits reclaim stolen funds for the company, hold wrongdoers accountable, and protect innocent stakeholders.

Contact a Reputable Business Theft Lawyer Immediately

Contact the experienced lawyers at Murrah & Killough, PLLC today & schedule your free consultation. We proudly serve Houston, & all throughout Texas. Visit our law offices at:

Our Houston Office

3000 Weslayan St. Suite 305
Houston, Texas 77027
Phone: (281) 501-1601