Mark Cuban Literally Spells Out The Name Of Receptionist Who Stole $82,000 From His First Company
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Employee theft is a concern that affects businesses worldwide, costing billions each year. Even prominent billionaire and Dallas Mavericks co-owner Mark Cuban faced this challenge in the early days of his entrepreneurial journey. In a recent interview on the Club Shay Shay podcast with three-time Super Bowl champion Shannon Sharpe, Cuban opened up about how a receptionist stole $82,000 from his first company, MicroSolutions. Cuban candidly discussed the incident, going as far as to spell out the name of the former employee who brought his fledgling business to the brink of collapse.
The Receptionist's Scheme: Checks Forged and Overwritten
Cuban recalled the shock of learning about the theft. "There was a lady, Renee Hardy—R-E-N-E-E H-A-R-D-Y," Cuban explained, highlighting that Hardy, then a receptionist at MicroSolutions, had been entrusted with a single responsibility: to collect vendor payables and mail them out. However, instead of mailing the checks, Hardy used white-out to alter the payee names, replacing them with her own. "One day, the bank called to let us know someone had whited out the payee section of the checks and put her name instead," Cuban told Sharpe.
The theft amounted to $82,000—virtually the entire financial reserve of MicroSolutions, which at the time held only $84,000. Cuban admitted that his company was left "flat broke," forcing him to explain the situation to their vendors. According to Cuban, the vendors agreed to support his efforts to rebuild, enabling the company to recover and grow. Despite the severity of the crime, Cuban didn't press charges against Hardy, as she had vanished and was suspected to have changed her name to avoid detection.
Cuban's Perspective on Employee Theft
During the interview, Sharpe asked Cuban if he's strict about firing employees involved in theft, considering this early experience. Cuban responded with an unusual take, suggesting that occasional theft might even be considered "a good problem to have." As Cuban sees it, people stealing from a company could reflect a positive cash flow—a perspective unique to someone who has since achieved billionaire status. Nonetheless, the experience underscored for him the importance of vigilance in monitoring company finances.
Confronting Employee Theft: Essential Steps for Companies
Cases like Cuban's serve as a cautionary tale for businesses about the need for robust protocols to prevent and address employee theft. According to CaseIQ, addressing workplace theft requires a structured approach, as accusations without concrete evidence can result in legal backlash, such as defamation lawsuits or wrongful termination claims. Companies should establish clear policies detailing unacceptable behaviour and the associated consequences, ensuring all employees are aware of and understand these policies to minimise risks.
When theft is suspected, businesses should undertake thorough investigations before reaching conclusions. Standard investigative steps include examining cash balances, inventory records, and transaction history for discrepancies. Sudden changes in employee spending habits or behaviour may also be a red flag, but conclusions should only be drawn from substantial evidence. Without clear proof, accusing an employee can lead to complex litigation and damage a company's reputation.
How to Handle Confirmed Cases of Employee Theft
When investigations confirm theft, the management should compile all supporting documentation, such as records, emails, and witness statements, to build a solid case. Video surveillance, if available, can further strengthen the evidence. Employers must also ensure the integrity of this evidence, avoiding alterations that could compromise its validity. For cases involving large sums or sensitive information, legal action may be an option. Under the U.S. Federal Employee Polygraph Protection Act, companies can even consider lie detector tests, although this is usually reserved for specific, high-stakes cases.
If termination is warranted, companies should proceed carefully, adhering to internal termination policies and applicable laws to avoid potential complications. Employees accused of theft may have the right to a union representative or co-worker during termination proceedings, especially if disciplinary action is anticipated. Organisations that hold insurance for employee theft should also file a police report before submitting a claim to ensure they meet policy requirements.
While Cuban's success ultimately insulated him from this setback, he continues to share his story as a learning experience for others navigating the business world. As Cuban told Sharpe, "People will always steal," but with the right safeguards and a clear understanding of policies, companies can better protect themselves against the financial and reputational damage that employee theft can bring.
