Applying for a new job. Previous employer arrested for fraud. What to do?

April 12, 2008 9:33 AM

Applying for a new job. Previous employer arrested for fraud. What to do?

My first real employer turned out to be a total scam-artist. After a while, I realized that what he was doing was totally unethical and looked for another job. I was there for about 10 months before I found a new one.

A few months ago, this employer was arrested for fraud. I have not been contacted by the authorities or any of the local media, who have covered the story extensively.

I knew things were shady, but I thought I was keeping my own nose clean by trying to be very careful while performing the tasks assigned to me. Upon reading the story of the arrest, I have realized that I may have unknowingly assisted this guy in committing fraud.

I've been at new job for about 2 years and have excelled there. I know I would have positive references from them.

I am not really on a job hunt right now, but recently came across a dream job and decided to apply for it. How should I handle this situation?

Anyone living in my city has likely heard of this company's fraud record, and if not, a simple google of the company name would definitely clue them in.

I thought about leaving it off, but then what if they ask about the 10 month gap?

posted by anonymous to work & money (19 answers total)

I would say if you can claim self-employment in any shape or form, that would be one ticket.
posted by crapmatic at 10:00 AM on April 12, 2008

don't mention it unless they ask but if the 10-month gap comes up come straight out with it and say you had a job and your employer got suddenly arrested. you have to be truthful and not omit anything major lest you want to seem as a shady character yourself.

they may look into the story behind that company. you want to make sure that anything you say rings true and holds up to their checks. that way you're just an employee who had no part in the crimes committed. guilt by association only comes into play when they realize what you told them doesn't add up. that plus the association with this person would scare me away from employing you.
posted by krautland at 10:08 AM on April 12, 2008

Honesty is usually the best policy. You could explain that you worked for him until you realized he was a fraudster, at which time you left. (But that then raises questions of why you didn't report him, etc.)

"I noticed he was doing unethical things, and started looking for a new job. When he started asking me to perform his unethical tasks, I left. I've since learned that he was arrested for fraud" might be a good way, and it downplays / suggests that you weren't involved.
posted by fogster at 10:08 AM on April 12, 2008

I think leaving it off would be worse than leaving it on and explaining how you weren't involved. Since the case against your former employer deals with fraud, it would probably be best to avoid doing things that look shady.
posted by PinkButterfly at 10:09 AM on April 12, 2008

that then raises questions of why you didn't report him

There are probably some employers who would be more concerned if you did report him based on your suspicions.
posted by grouse at 10:24 AM on April 12, 2008

I agree that leaving it off completely is not a good idea. If or when they find out, they will wonder why and it will make you look bad.

In a resume, I'd use a format that leaves off company names for all the jobs you've had. Include only position/title, responsibilities, accomplishments, dates of employ, etc. Maybe just include the company type. Instead of "Tony Rezco's Influence Peddling, Inc.", just put "a Real Estate Investment Company".

On a application form, I'd probably do the same thing. On the other hand, depending on the job and the people reviewing the apps, a blank field on the form is worse than potentially harmful information. You might have to try to "read" the people where you are applying to see what your gut says about them.

So I guess I wouldn't advertise it, but I would be honest about it. "Yeah, I worked for So and So. I didn't like the job, and I didn't like the environment, so I got out as quickly as I could. Despite that, I did learn a lot about that field."

I had a situation where I had to explain away the fact that I quit a job with no notice in the interview for my next job. I just told them that I had a personality conflict with the owner of the company and that I was proud of the work I did there, but that if asked, he probably wouldn't have nice things to say.
posted by gjc at 10:32 AM on April 12, 2008

I interview people all the time, and I have to say that if I interviewed you, I might say something like "Hey, I see you worked for that guy who just got arrested. What was that like?"

I would *not* say "Are you going to testify against him? What? You mean you haven't even gotten in touch with the D.A.? Why, YOU AMORAL, SeLLOUT MOTHERFUCKER! How dare you think you're good enough to work here! Curse you, scum...CURSE YOU!"

Give me a break. It's a point of interest that will separate you from other applicants. Play it up, have fun with it, and use it to get a good job this time.
posted by bingo at 10:34 AM on April 12, 2008 [1 favorite]

I would include the job on the resume, and also include on the resume the explanation. But that's just me.
posted by The World Famous at 10:54 AM on April 12, 2008

If I've got the timeline right, you left the company a good year and a half before all this blew up, right? That being the case, and since the authorities haven't seen any need to question you about what you may have done or witnessed there, my gut feeling is that this isn't as scary an issue as you're making it. (Though I can understand why you'd be a little freaked out.)

I wouldn't call attention to it by leaving a gap in the resume. Neither would I go out of my way to try and apologize for it. Just list it like it was any other job and if the question comes up - which it may well based on what you've said about this guy's current notoriety - then you just say something like, "Yeah, I worked there. That was before all this happened. Then the opportunity at MostRecentJob came up, and it was more in line with my career ambitions so I took it." I wouldn't even suggest that you had suspicions about the place if you don't have to.

I mean you've since worked two years at another job. It's not like you were still there, furiously shredding documents when the cops kicked the doors in. If you were actually working there when this all went down, maybe I'd be more worried, but I think you're pretty much in the clear. Hell, it will give you an interesting story to tell, which will make you a more memorable interview.
posted by Naberius at 11:33 AM on April 12, 2008

You've got a job, send your resume to a couple other companies and see if you get a phone screen or whatever. Try it out.
posted by rhizome at 12:01 PM on April 12, 2008

That happened to me -- the managing partner at a law firm where I worked while in law school got indicted for bribing a public official. Fortunately I had done some work during the same time from for a different lawyer, so I just dropped that particular job and I didn't have any gap issue. (And now, years later, I barely remember it, so these things happen.)
posted by ClaudiaCenter at 12:51 PM on April 12, 2008

"I worked there until I realized that he was being unethical, at which point I left. I did not realize at the time his actions were illegal, but that was apparently the case. I'm looking forward to a great relationship with my next employer, where I can demonstrate my talents and abilities in an environment of trust and honesty."
posted by blue_beetle at 1:26 PM on April 12, 2008 [2 favorites]

I'd put the job on your resume. If they bring up the shady dealings, "I left when I realized I was being asked to do/aid in/turn a blind eye to questionable/illegal/unethical things" seems like a good thing to say (and a good thing to have done). It shows you're ethical enough not to abet whatever it was, but at the same time it avoids planting a worry in the interviewer's mind that you'll run to the D.A. as soon as they (cough) bend the rules a little bit. Unless your old employer was really egregious, I don't think it reflects badly on you that you simply got out rather than going to the cops. The message you want to subliminally project is "I'm ethical and I do what's right, but I'm still a willing cog-slave for my corporate masters." You've worked at another place for a couple of years now and you're not leaving there under a cloud, so I really don't think you need to worry about being tainted by association.
posted by hattifattener at 1:43 PM on April 12, 2008

Just list it like it was any other job and if the question comes up - which it may well based on what you've said about this guy's current notoriety - then you just say something like, "Yeah, I worked there. That was before all this happened. Then the opportunity at MostRecentJob came up, and it was more in line with my career ambitions so I took it." I wouldn't even suggest that you had suspicions about the place if you don't have to.

I like this approach. Given the time frame, the locals may have suspicions or knowledge from the published accounts that bad thngs were going on while you were there, but it is entirely possible they were done without any knowledge/awareness/suspicions on your part. He was the boss; it was his job to be in charge of the Big Picture, you could have been a mere cog so far down on the gear train you might not have seen anything, and you could just be way too trusting of the human race to notice anything amiss. (There are people like that; you may or may not be one of them, it doesn't matter.)

The most important fact in this story is that as long as it's apparently been since the mess hit the papers, nobody has contacted you, nobody has interviewed you, nobody has asked what you know, or if you know anything. That implies that nobody thinks you know anything, or at least anything worth asking about, and Lord knows, they'll question everybody these days if they think they know anything.

If asked, I'd just keep mentioning that the police have not contacted you in any way, and if pressed, that you did not notice anything amiss while you were there, and gosh, you were as shocked as anyone when it made the papers.
posted by unrepentanthippie at 3:22 PM on April 12, 2008

You may also want to talk to a lawyer about whether your part in the fraud is something you could be prosecuted for. If so, you may wish to approach the authorities (through your lawyer) before they come after you.
posted by winston at 3:38 PM on April 12, 2008

In a resume, I'd use a format that leaves off company names for all the jobs you've had. Include only position/title, responsibilities, accomplishments, dates of employ, etc. Maybe just include the company type. Instead of "Tony Rezco's Influence Peddling, Inc.", just put "a Real Estate Investment Company".

I received a resume like this the last time I was hiring. I said to myself, "Wow, what is this person trying to hide?" and put it in the NO pile.
posted by shiny blue object at 3:55 PM on April 12, 2008

Put it in the resume. Chances are they might not realize the connection. If it comes up in an interview, your spin should be "It was an interesting experience, but I'm glad it's over."

Stay as far away from anything suggesting personal knowledge of fraud or criminal culpability as you can. Answers to probing questions should be in the form "I had my job to do. I wasn't really involved in that aspect of the business." Redirect these lines of inquiry to a positive aspect of your employment. "Eventually I left when I found something that seemed a little more stable."
posted by dhartung at 4:45 PM on April 12, 2008

You said it was your first job, so if you leave it off there's no gap. Maybe it took you ten months to find that great job you've got now....
posted by Joleta at 8:10 PM on April 12, 2008

I'd put it in the resume with an asterisk. At the bottom, I'd note that the short length of employment was due to the company suddenly going out of business and leave it at that.
posted by moof at 9:28 PM on April 12, 2008