Misuse of company funds by a business partner or sibling is painful because it is both a money problem and a trust problem. In the Philippines, your options depend on how the business is structured, what the person’s role was, how the money was taken or used, and whether the dispute is really a corporate, partnership, civil, criminal, or family-related issue. This guide explains how Philippine law generally treats misuse of company money, what evidence to preserve, when the matter may be estafa, theft, qualified theft, breach of fiduciary duty, or a civil accounting case, and what practical steps usually make the biggest difference early on.

First, Identify What Kind of Business Relationship You Have

Before accusing anyone of “stealing company funds,” clarify the legal setup. The available remedies are different for a corporation, partnership, sole proprietorship, informal family business, or joint venture.

Business setup	Common situation	Usual legal angle
Corporation	Sibling or partner is a stockholder, director, treasurer, president, or officer	Corporate records inspection, board action, derivative suit, intra-corporate case, criminal complaint if facts support it
Partnership	Two or more persons agreed to contribute money, property, or industry to a common business	Civil Code partnership accounting, fiduciary duty, dissolution, damages, possible criminal case
Sole proprietorship with “partner” in practice	Business is registered under one person, but another person manages money	Agency, loan, trust, employment, or civil collection depending on proof
Family business without formal papers	Siblings pooled funds, used one bank account, and shared profits informally	Accounting, recovery of contributions, unjust enrichment, Article 332 issues if criminal charges are considered
Corporation with foreign investor	Foreigner funded the business but shares are held by Filipinos because of nationality restrictions	Corporate documents, trust/nominee risks, Anti-Dummy Law concerns, civil recovery, possible criminal complaint

This first step matters because the “company funds” may legally belong to the corporation or partnership, not directly to one owner. In a corporation, the corporation has a separate juridical personality. Even if you own 50% of the shares, money in the corporate account is generally corporate money, not your personal money.

That is why some cases must be filed by the corporation itself, while others may require a stockholder’s derivative suit, which is a case filed by a stockholder to enforce a corporate right when the corporation refuses or fails to act. The Supreme Court has described a derivative suit as one where the corporation is the real party in interest because the injury is to the corporation, not merely to one stockholder. (Lawphil)

What Counts as Misuse of Company Funds?

Misuse of company funds usually means that someone used business money for a purpose not authorized by the company, the partners, the board, the bylaws, or the agreed business arrangement.

Common examples include:

Withdrawing cash from the company account without approval
Paying personal credit cards, tuition, travel, gambling, or household expenses using company money
Transferring customer payments to a personal GCash, Maya, or bank account
Issuing checks to fake suppliers
Padding expenses or using fake receipts
Diverting sales to another business
Taking inventory and selling it privately
Paying “salary,” “commission,” or “allowance” not approved by the board or partners
Refusing to show books, bank statements, invoices, or receipts
Using company money as if it were a personal loan without documentation

Not every unauthorized use automatically becomes a criminal case. Philippine prosecutors and courts usually look for specific elements: receipt of money under a duty to return or account, conversion or taking, damage, intent to gain, deceit, abuse of confidence, or breach of a legal duty.

Legal Bases Under Philippine Law

Revised Corporation Code: Duties of Directors, Officers, and Stockholders

For corporations, the main law is the Revised Corporation Code of the Philippines, Republic Act No. 11232 (2019). It requires directors and trustees to perform their duties as prescribed by law, rules of good corporate governance, and the corporation’s bylaws. (Lawphil)

Important corporate remedies include:

Inspection of corporate records. Section 73 of RA 11232 requires corporations to keep corporate records and generally allows directors, trustees, stockholders, or members to inspect and demand reproduction of corporate records, subject to legal limitations. (Lawphil)
Board action. The board may authorize an internal audit, demand letter, filing of a criminal complaint, filing of a civil case, or removal/replacement of officers if allowed by law and bylaws.
Derivative suit. If the wrongdoer controls the corporation and prevents it from suing, a stockholder may consider a derivative suit for the corporation’s benefit.
Intra-corporate case. Disputes involving stockholders, directors, officers, and corporate rights are often handled by Regional Trial Courts designated as Special Commercial Courts, not by the SEC as a trial court.

Under the Securities Regulation Code, Republic Act No. 8799 (2000), jurisdiction over cases formerly handled by the SEC under PD 902-A, including many intra-corporate controversies, was transferred to the courts of general jurisdiction or appropriate Regional Trial Courts. (Lawphil) The Supreme Court’s Interim Rules of Procedure for Intra-Corporate Controversies require parties to attach affidavits, documents, and supporting evidence to pleadings, so preparation of records is critical from the start. (Lawphil)

Civil Code: Partnership, Agency, Accounting, and Damages

If the business is a partnership or informal joint business, the Civil Code of the Philippines, Republic Act No. 386 becomes very important.

For partnerships:

Article 1805 gives partners access to partnership books at reasonable hours.
Article 1806 requires partners to render true and full information on demand.
Article 1807 requires every partner to account to the partnership for benefits and hold as trustee profits derived without the consent of the other partners from partnership-related transactions or use of partnership property. (Lawphil)

For agency relationships, Article 1891 states that every agent must render an account of transactions and deliver to the principal whatever the agent received by virtue of the agency. Any stipulation exempting the agent from the duty to account is void. (Law Library - Legal Resource PH)

In plain English: if someone was entrusted to manage, collect, spend, or hold business money for another person or for the business, that person may be required to explain where the money went and return what was improperly used.

Revised Penal Code: Estafa, Theft, and Qualified Theft

The Revised Penal Code may apply if the facts show a crime against property. (Lawphil)

The most common possible crimes are:

Possible offense	When it may apply	Key issue
Estafa by misappropriation or conversion under Article 315(1)(b)	Person received money in trust, on commission, for administration, or under an obligation to deliver or return it, then misappropriated it	Did the person have juridical possession and a duty to account or return?
Theft under Article 308	Person took personal property belonging to another without consent, with intent to gain, without violence or force	Was there unlawful taking?
Qualified theft under Article 310	Theft committed with grave abuse of confidence or other qualifying circumstances	Was the abuse of confidence specifically grave and proven?
Falsification	Fake receipts, altered vouchers, forged signatures, or false accounting documents were used	Were documents falsified to support the withdrawal or payment?
Other fraud or corporate offenses	Depends on facts, corporate filings, tax documents, or securities issues	Was there deceit, false reporting, or regulatory violation?

For estafa through misappropriation under Article 315(1)(b), the Supreme Court has stated the usual elements: receipt of money or property in trust, on commission, for administration, or under an obligation to deliver or return; misappropriation or conversion; prejudice to another; and demand by the offended party. (Supreme Court E-Library)

A common mistake is assuming every missing fund is automatically estafa. The Supreme Court has emphasized the difference between material possession and juridical possession. If a person merely handled money as an employee or cashier on behalf of the employer, the case may be theft or qualified theft rather than estafa, depending on the facts. (Supreme Court of the Philippines)

For qualified theft, prosecutors must prove not only taking, but also the qualifying circumstance such as grave abuse of confidence. The Supreme Court has reiterated that the prosecution must establish a relationship of confidence and that ordinary access to property is not always enough. (Lawphil)

RA 10951: Amounts Matter for Penalties

Republic Act No. 10951, passed in 2017, adjusted the amounts and values used in many Revised Penal Code penalties, including property crimes. (Lawphil) This means the amount allegedly misused can affect the penalty range, court handling, bail considerations, and practical strategy.

For business owners, the exact amount must be supported by documents, not estimates. A complaint saying “around ₱2 million is missing” is weaker than a complaint with bank statements, dates, voucher numbers, check numbers, invoices, and a clear computation.

Special Issue: What If the Person Who Misused the Funds Is Your Sibling?

Many Filipino family businesses involve siblings, cousins, parents, and in-laws. The law treats some family-property offenses differently.

Article 332 of the Revised Penal Code provides that no criminal liability, but only civil liability, results from theft, swindling, or malicious mischief committed by certain relatives against each other, including brothers and sisters or brothers-in-law and sisters-in-law if living together. (Lawphil)

This is called an absolutory cause. It does not mean the act was correct. It means the State may not impose criminal punishment for those specific crimes when the exact relationship and conditions apply. The Supreme Court has clarified that Article 332 covers only the simple crimes of theft, swindling, and malicious mischief, and does not automatically apply to all crimes. (Supreme Court E-Library)

Practical points:

If siblings are not living together, Article 332 may not apply to brothers and sisters.
If the offended party is the corporation, not the sibling personally, prosecutors may look closely at whether the family exemption applies at all.
If falsification, use of fake documents, or another separate offense is involved, Article 332 may not protect the wrongdoer from that separate charge.
Even when Article 332 applies, the injured person may still pursue civil recovery, accounting, damages, or corporate remedies.

This is one reason family business disputes need careful framing. A poorly prepared criminal complaint may be dismissed if it ignores Article 332, the corporate personality of the business, or the exact relationship between the parties.

What to Do Immediately When You Suspect Misuse of Company Funds

1. Secure the Records Before Confronting the Person

In real life, records disappear after confrontation. Before accusing anyone, quietly preserve:

Bank statements
Check images and deposit slips
Online banking transaction histories
GCash, Maya, PayPal, Stripe, or other payment records
Sales invoices and official receipts
Delivery receipts
Vouchers and liquidation reports
Payroll records
Petty cash ledgers
Supplier contracts and statements of account
Board resolutions and secretary’s certificates
Chat messages, emails, and text instructions
CCTV footage, if relevant
BIR filings, books of accounts, and audited financial statements

For digital evidence, preserve screenshots but also keep the original files and metadata when possible. Screenshots alone are often attacked as incomplete or easy to manipulate.

2. Compare Authority Versus Actual Use

Create a simple table:

Transaction	Amount	Date	Who approved it?	Stated purpose	Actual recipient	Supporting document	Problem
Bank transfer	₱150,000	March 5	None found	Supplier payment	Personal account	No invoice	Possible unauthorized withdrawal
Check payment	₱80,000	April 12	Treasurer only	Office renovation	Relative of officer	Questionable receipt	Possible conflict of interest
Cash withdrawal	₱50,000	May 2	Manager	Petty cash	Unknown	No liquidation	Missing funds

This format helps lawyers, auditors, police investigators, and prosecutors understand the case quickly.

3. Check the Company Documents

For a corporation, review:

Articles of incorporation
Bylaws
General Information Sheet
Board resolutions
Secretary’s certificates
Treasurer’s affidavit
Bank signing authority documents
Shareholders’ agreement, if any
Employment or officer contracts
Accounting policies
Prior approvals for loans, reimbursements, allowances, or advances

For a partnership or informal business, review:

Partnership agreement
DTI or SEC registration
Written investment agreement
Profit-sharing agreement
Loan documents
Chat messages showing contributions and agreed roles
Bank account ownership and signing authority
Receipts for capital contributions

Many disputes turn on one question: Was the transaction unauthorized, or was it loosely authorized but poorly documented?

4. Send a Written Demand for Accounting

A demand letter is not just a formality. In estafa by misappropriation, demand is often used as evidence that the offended party asked for the return or accounting of the money. Demand may be written, verbal, or shown by other circumstances, but a written demand is easier to prove.

A strong demand usually states:

The person’s role in the business
The specific transactions questioned
The documents requested
The amount currently unexplained
A deadline to account, return, or explain
A request to preserve all records
A warning that failure to account may lead to civil, corporate, or criminal action

Avoid insults, threats, or social media posts. Keep the tone factual. A reckless accusation can create counterclaims for damages, defamation, or harassment.

5. Consider an Internal Audit or Independent Accounting

For larger amounts, hire an independent CPA or forensic accountant. This is especially useful when there are many small transactions, mixed personal and business accounts, cash sales, inventory issues, or suspected fake suppliers.

A good audit report should identify:

Missing or unsupported transactions
Duplicate payments
Related-party payments
Personal expenses charged to the company
Inventory variances
Unrecorded sales
Bank deposits not matching sales records
Tax exposure from unreported income or unsupported deductions

An audit report does not replace legal proof, but it often becomes the backbone of a civil complaint, board action, settlement discussion, or criminal affidavit.

6. Decide Which Remedy Fits the Facts

Your options may include one or more of the following:

Remedy	Where usually filed or handled	Best for	Limits
Internal corporate action	Board or stockholders	Removing authority, freezing access, authorizing audit, demanding return	Hard if wrongdoer controls the board
Inspection of records	Corporation, possibly SEC-related complaint for inspection issues	Getting books, minutes, ledgers, and transaction records	May be resisted; must follow proper purpose and procedure
Civil action for accounting or damages	Regular court or Special Commercial Court depending on issue	Recovering money and forcing an accounting	Can take time; proof-heavy
Derivative suit	Special Commercial Court	Wrong done to corporation when management refuses to sue	Technical requirements; corporation is real party in interest
Criminal complaint	Prosecutor’s office, sometimes police/NBI first	Estafa, theft, qualified theft, falsification, or related crimes	Requires proof beyond reasonable doubt; not a collection shortcut
Small claims	First-level court	Simple money claims within small claims rules	Not for complex corporate fraud or claims needing extensive accounting
Settlement agreement	Private negotiation, mediation, or court compromise	Fast recovery, installment return, resignation, document turnover	Must be carefully drafted and secured

Where to File in the Philippines

Barangay Conciliation

Barangay conciliation may be required before filing certain cases if the parties are individuals who live in the same city or municipality, or in certain nearby barangays, and the dispute is covered by the Katarungang Pambarangay system.

The Local Government Code provisions on barangay conciliation are found in RA 7160, and the Supreme Court has stated that barangay conciliation is a precondition to filing a complaint in covered cases. (Lawphil) The Supreme Court has also noted under Section 412(a) of RA 7160 that barangay conciliation may be a precondition before filing a complaint in court when the law requires it. (Lawphil)

However, barangay conciliation does not cover every situation. It may not apply where:

One party is a corporation
The accused or respondent lives in another city or municipality not covered by the venue rules
The offense is punishable by imprisonment exceeding the barangay threshold
The dispute requires urgent court relief
The government is a party
The case falls under exceptions recognized by law

In barangay proceedings, parties generally appear personally and without counsel, except for minors and incompetents who may be assisted by non-lawyer next of kin. (Lawphil)

Prosecutor’s Office for Criminal Complaints

For estafa, theft, qualified theft, falsification, and similar offenses, complaints are usually filed with the Office of the City or Provincial Prosecutor where the offense was committed.

Typical documents include:

Complaint-affidavit
Affidavits of witnesses
Demand letter and proof of receipt
Bank records
Corporate documents proving authority and ownership
Audit report or computation
Receipts, vouchers, invoices, and ledgers
Screenshots and printouts of messages, with explanation of source
Government IDs of complainant and witnesses
Board resolution or secretary’s certificate authorizing the filing, if the complainant is a corporation

The prosecutor will usually require the respondent to file a counter-affidavit. The prosecutor then issues a resolution either dismissing the complaint or finding probable cause and filing an Information in court.

Regional Trial Court or Special Commercial Court

If the dispute is intra-corporate, such as a conflict among stockholders, directors, trustees, or officers involving corporate rights, it may belong in an RTC designated as a Special Commercial Court.

Examples:

A stockholder sues on behalf of the corporation because the controlling sibling-director diverted funds.
A minority shareholder seeks inspection of records and accountability.
A corporate officer is accused of unauthorized related-party transactions.
The board is deadlocked and cannot act against the officer controlling the bank account.

The correct venue and branch matter. Filing in the wrong court can waste months.

Small Claims Court

Small claims can help in straightforward money claims, such as unpaid loans or reimbursements, when the claim fits the small claims rules. The Supreme Court’s small claims materials are available through the official Small Claims page of the Philippine Judiciary. (Supreme Court of the Philippines)

Under the Rules on Expedited Procedures, small claims are handled by first-level courts and are designed to be faster and simpler than ordinary civil cases. (Supreme Court of the Philippines) But small claims are usually not ideal for complex misuse of company funds involving fraud, corporate control, falsified records, multiple transactions, or a need for injunction or accounting.

Practical Timelines and Bottlenecks

Step	Typical practical timeline	Common bottleneck
Gathering bank and accounting records	1–4 weeks	Missing documents, uncooperative bookkeeper, bank authorization issues
Internal audit	2–8+ weeks	Volume of transactions, cash sales, poor bookkeeping
Demand letter	1–2 weeks including response period	Respondent ignores or gives partial records
Barangay proceedings, if required	Usually weeks to a few months	Nonappearance, settlement pressure, unclear coverage
Prosecutor preliminary investigation	Several months or longer	Congested dockets, incomplete affidavits, counter-affidavits, motions
Civil or intra-corporate case	Often years if contested	Court congestion, technical pleadings, injunction issues, appeals
Settlement	Days to months	No security, unrealistic installment promises, family pressure

The biggest practical mistake is filing too early with weak documents. A well-organized complaint with a transaction matrix, proof of authority, and clear computation is much stronger than a long emotional affidavit.

What If You Are Abroad?

Many Filipinos abroad discover misuse of business funds after sending capital to a sibling or partner in the Philippines. Foreigners also commonly fund businesses managed by a local partner.

If you are outside the Philippines:

Execute affidavits before the Philippine Embassy or Consulate, or have them notarized abroad and apostilled if the country is part of the Apostille Convention.
Prepare a Special Power of Attorney authorizing someone in the Philippines to request records, coordinate with accountants, attend barangay proceedings if allowed, or file complaints.
Keep remittance records, SWIFT confirmations, Wise receipts, bank transfers, and messages explaining the purpose of the funds.
Avoid relying only on verbal family arrangements.
For foreigners, check whether the business structure complied with Philippine nationality restrictions, especially for landholding, retail trade, mass media, advertising, public utilities, and other regulated industries.

A foreigner who funded a business through a Filipino nominee may still have civil or criminal remedies depending on the facts, but nominee structures can create separate legal risks. The documents must be reviewed carefully because Philippine law restricts foreign ownership in certain areas.

Common Scenarios

“My sibling used company money for personal expenses but says it was their salary.”

Check whether there was an approved salary, board resolution, employment contract, payroll record, or consistent prior practice. In family corporations, people often call withdrawals “salary” after the fact. If there was no approval and no payroll treatment, the amount may be treated as unauthorized withdrawal, cash advance, or misappropriation depending on the evidence.

“My business partner refuses to show the books.”

For a partnership, Civil Code Articles 1805 and 1806 support access to books and full information. For a corporation, Section 73 of the Revised Corporation Code supports inspection rights. The written request should be specific: identify the records, period covered, purpose, and proposed inspection date.

“The company bank account is under my sibling’s personal name.”

This is common in informal businesses and creates proof problems. You will need evidence showing that the funds were business funds, not personal money: remittance notes, chat messages, invoices, customer payment instructions, contribution records, and profit-sharing arrangements.

“Customers paid my partner directly.”

This may support a claim for accounting, return of funds, damages, or criminal liability depending on whether the partner had authority to receive payments and whether the money was later hidden, denied, or used personally.

“The wrongdoer is also a stockholder. Can a stockholder steal from the company?”

Yes, a stockholder does not personally own corporate funds. Shares represent ownership interest in the corporation, but corporate money belongs to the corporation. A stockholder, director, or officer may still be liable for unauthorized taking or misuse if the legal elements are present.

“Should I post about it online?”

Usually, no. Public accusations can damage settlement chances and expose you to defamation or cyberlibel claims. Preserve evidence and use formal legal channels.

Documents to Prepare

Purpose	Documents
Prove the business exists	SEC certificate, DTI registration, mayor’s permit, BIR registration, articles, bylaws, partnership agreement
Prove your authority	Board resolution, secretary’s certificate, SPA, stock certificates, partnership documents
Prove the person’s role	Appointment papers, employment contract, board minutes, bank signing forms, chat messages
Prove the funds were company funds	Bank statements, sales invoices, ORs, collection records, remittance receipts
Prove unauthorized use	No approval, contradictory records, personal recipient account, fake supplier documents
Prove demand	Demand letter, email, courier proof, acknowledgment receipt, message thread
Prove amount	Transaction matrix, audit report, ledger, bank reconciliation, supporting documents
Prove fraud or concealment	Fake receipts, altered vouchers, forged signatures, deleted records, false explanations

Mistakes That Can Weaken Your Case

Accusing the person before preserving records
Filing a criminal complaint without a clear computation
Treating a corporate injury as purely personal
Ignoring Article 332 in sibling disputes
Using only screenshots without original files
Failing to get board authority when the complainant is a corporation
Mixing personal loans, capital contributions, salary, dividends, and reimbursements in one unclear claim
Calling everything “estafa” even when the facts point to theft, accounting, breach of fiduciary duty, or a civil collection case
Accepting installment settlement without collateral, confession of judgment where appropriate, post-dated checks, security, or clear default terms
Forgetting BIR consequences of unsupported expenses, unreported sales, or improper withdrawals

Settlement: When It Helps and When It Hurts

Settlement can be practical, especially in family businesses where the priority is recovery of funds and turnover of records. But settlement should not be vague.

A good settlement should cover:

Exact amount acknowledged
Payment schedule
Interest or penalties, if any
Security, collateral, guarantor, or post-dated checks
Turnover of books, passwords, receipts, inventory, and bank access
Resignation or removal from financial authority
Confidentiality, if appropriate
Consequences of default
Whether civil, corporate, or criminal complaints will be filed, suspended, or withdrawn
Tax treatment and documentation

Be careful with wording. A settlement that says “all claims are waived” before full payment may leave you with little leverage if the person defaults.

Frequently Asked Questions

Can I file estafa against my business partner in the Philippines?

Yes, if the facts satisfy Article 315 of the Revised Penal Code, especially estafa by misappropriation or conversion. You must show that the person received money or property under a duty to deliver, return, or account for it, then misappropriated it to your prejudice. If the person merely had physical custody as an employee, the correct offense may be theft or qualified theft instead of estafa.

Is misuse of company funds a criminal case or a civil case?

It can be both, but not always. If the problem is failure to account, unauthorized withdrawals, or breach of business agreements, civil or corporate remedies may be appropriate. If there is misappropriation, unlawful taking, deceit, falsification, or grave abuse of confidence, a criminal complaint may also be possible.

Can I sue my sibling for taking money from our family business?

Yes, but the remedy depends on the facts. You may pursue accounting, recovery of money, damages, corporate remedies, or a criminal complaint if the elements are present. However, Article 332 of the Revised Penal Code may remove criminal liability for theft, swindling, or malicious mischief between certain relatives, including siblings who are living together, while preserving civil liability.

What if the money belongs to a corporation, not directly to me?

If the money belongs to the corporation, the corporation is usually the proper party to recover it. If the people controlling the corporation refuse to act because the wrongdoer is one of them, a stockholder may consider a derivative suit for the benefit of the corporation.

Can a director or treasurer be personally liable for company funds?

Yes. A director, treasurer, president, or officer may be liable if they breached legal duties, violated bylaws or board authority, misused corporate assets, falsified documents, or committed acts that satisfy the elements of a civil wrong or crime. Their title does not give them unlimited authority to use corporate money.

Do I need an audit before filing a case?

Not always, but an audit is very helpful when many transactions are involved. For simple cases, bank statements and receipts may be enough. For complex business disputes, an independent accounting can clarify the amount, identify unsupported transactions, and make the complaint more credible.

Can I freeze the company bank account?

You usually cannot freeze an account by yourself unless you are an authorized signatory acting within bank rules and corporate authority. In urgent cases, court remedies may be considered, but courts require strong evidence. Internally, the board may change signatories, revoke authority, or require dual signatures if it has the votes and documents to do so.

What if my partner says the money was a loan or cash advance?

Ask for the loan agreement, board approval, repayment terms, accounting entry, and proof that the company authorized it. If there is no documentation, the explanation may still be evaluated, but it will be weaker. Many misuse cases turn on whether the withdrawal was authorized before it happened or merely justified afterward.

Can a foreigner file a complaint for misuse of business funds in the Philippines?

Yes, foreigners may file civil or criminal complaints in the Philippines if they are injured by acts committed here or involving Philippine business dealings. If the foreigner is abroad, affidavits, apostilled documents, consular notarization, and a Special Power of Attorney may be needed. Foreign ownership restrictions and nominee arrangements should also be reviewed.

How long do these cases take?

A demand and accounting process may take weeks. Prosecutor proceedings often take months or longer. Civil and intra-corporate court cases can take years if heavily contested. The timeline depends on the quality of evidence, cooperation of banks and accountants, court congestion, and whether the parties settle.

Key Takeaways

Misuse of company funds can lead to civil, corporate, and criminal remedies, but the correct path depends on the business structure and evidence.
In corporations, the money usually belongs to the corporation, so board authority, derivative suits, and intra-corporate rules may matter.
In partnerships, Civil Code rules give partners rights to inspect books, demand information, and require accounting.
Estafa, theft, and qualified theft have different legal elements; not every missing fund is automatically estafa.
If the wrongdoer is a sibling, Article 332 of the Revised Penal Code may affect criminal liability for theft, swindling, or malicious mischief, especially if the siblings live together.
Preserve records before confrontation: bank statements, receipts, vouchers, chats, corporate documents, and accounting files.
A clear transaction matrix and independent audit can make the difference between a weak accusation and a strong case.
Settlement can be useful, but it should include exact amounts, payment terms, security, turnover of records, and consequences of default.