The volume in this San Antonio hair salon business much have been tremendous for the owners to have not notice the alleged embezzlement of over One Million Dollars.
It seems incomprehensible how a scheme this large could have occurred and for so long. The only explanation I can find without access to more of the case details is that this salon must of done a crazy level of business. I just never imagined a hair salon could generate such profits and cash flows to enable any individual to divert funds of this level without notice.
I liked the finer points of the article – such as the defendant’s own retained expert witness who showed that the defendant had been withdrawing funds long before she started putting funds back into the business. It seems in most cases if the expert retained for the party identifies information that could be detrimental to the retaining party’s case, the expert is paid, released from the engagement and never disclosed in the matter. Once again, without further details it is hard to determine what happened, but having your expert testify to facts to your detriment is usually not the desired goal of retaining an expert. The expert has to remain objective, unbiased and uncover all the facts, supporting and refuting any allegations regardless of the party, but it is widely known that once you, the retained expert, uncover facts that could lead to the detriment of the retaining party’s case, continuing work and testifying is often no longer desired by counsel.
Here’s the URL to the full story:
30 thoughts on “Embezzlement within a hair salon: what volume did they do in this business?”
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Hi Steve: It appears the Newby family trusted Kathleen Pierce with 100% of their business. To skim $1 million dollars in 4 years would mean she would have to embezzle $1000 a day in excess profits daily. At $50 a person thats a lot of daily volume. This topic never ceases to amaze me. There are 95 beauty salons within a 2 mile radius. With word about this locally I would say no business owner will do any diligence to prevent this either. Carl Slicer.
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Good post and interesting article. The volume is some what surprising.
What got my attention in the article was her possible sentencing, “Her sentence could be from probation to life in prison.” That is a big range of outcomes!
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