Mesa Gym Fraud

They are now out of business, but when my son was in college, he worked at this gym during summer break. Several weeks into his employment he had not received his first paycheck. He told me that he had asked around and found out it was typical that it takes a few weeks before the first paycheck arrived.

Since I knew that he was a weekly employee and that Arizona law required payment of wages earned no more than five days after the end of the payroll period, I began to wonder what was going on. When my son finally received his first paycheck, I could not find evidence that the monies he had earned at the start of his gym employment were ever paid.

Then my wife observed to me that during her regular trips to this same gym, she had noticed that the CFO drove a convertible Mercedes-Benz, not the normal car of a one-location gym employee. RED FLAG!

With aroused suspicions, I called the CPA and confronted him with the evidence. He confessed that he knew what was going on and expressed fears that I would tell the Arizona Institute of Certified Public Accountants as I had threatened. But my son asked me to back off as he did not want me to jeopardize his summer job, so I did nothing. Today, that gym is closed. Was the closure embezzlement related?

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