Why Business Owners Should NEVER Hire Family Members

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Under no circumstances should a business ever hire family members of current employees. I don’t care how good the current employee is or how good the potential employee seems. No “wife of the CFO to help with the books.” No “son of a sales guy to help with office work.” No “brother of our VP to work in sales.”

No matter what position either family member is in, it’s not a good idea to hire more than one because the chance of collusion for the purpose of committing fraud skyrockets. Is there a study that says so? Not that I’ve seen. I’m just basing my statement on my practical experience and the number of cases I’ve seen with family members committing fraud.

Take this Milwaukee area fraud at Parkview Title Service. Mom (Bobbi Moths) hired her daughter (Jamie Wilson). The daughter had serious financial troubles, and I’m sure the business owner had no idea. Continue reading