Internal Investigation for Large Franchisee

Epstein Becker Green (EBG) conducted an internal investigation for a large fitness and wellness franchisee related to allegations of employee malfeasance.

For years, an employee had run “charity classes” and solicited donations from members of the fitness club, which would ostensibly be made to various nonprofit organizations. Our client received reports that the employee had instead mishandled the funds and that none of the donations went to the nonprofits. This resulted in third parties contacting the media, which covered the story. Criminal charges were filed against the employee.

Through a thorough investigation involving EBG attorneys in our employment and white collar practices, we determined how funds had been mismanaged by the now-former employee. We subsequently engaged in efforts to remediate the problem and restore the trust and confidence of our client’s members and the nonprofit community.

Results may vary depending on your particular facts and legal circumstances.