Update 3: she took a plea, here's what recovery actually looks like.
For anyone who followed the first two posts, the $60k was stolen, she was arrested, I shared everything I did in order. A lot of you bookmarked that post.
This one's for the people who asked "then what."
She took a plea deal. I don't know how I expected to feel, I had this idea that when it was "over" I'd feel something decisive. Closure is the word people use. What I actually felt was tired. And then a little angry that I felt tired instead of something better.
The money situation is what it is, We're in civil recovery now which is slower, less certain, and significantly less satisfying than a courtroom scene from TV. The criminal case is separate from getting your money back. You assume the arrest is the finish line. It isn't. It's the beginning of a completely different process with different lawyers and a different timeline.
The first thing I did was map every single access point in our finances. Not just bank accounts, Payment processors, Payroll system, Vendor portals, QuickBooks login, Expense platforms. I had given one person access to all of it because it was convenient. Convenience is how these things happen.
We now have a rule no single person has both the ability to create a vendor and the ability to approve a payment to that vendor. That's it. That one control would have caught this earlier. The forensic accountant told me this is the single most common failure pattern she sees.
We also switched bookkeeping tools. Partly practical, partly I just couldn't look at the old system anymore. We went with something that surfaces anomalies automatically and flags anything that doesn't match prior period patterns for that vendor, I wish I'd had it two years ago.
I had been protecting them from the details because I thought that's what a founder is supposed to do, They knew something was wrong for weeks before I told them. They always do. The honest conversation I finally had with everyone was better than the silence had been. One of my engineers said "we figured. we're still here." That sentence hit harder than I expected.
What I'd add to the last post, if you're early in this situation, the forensic accountant's report doesn't just help criminally, It helped us with our insurance claim, it helped when we went to civil court, and it helped me understand exactly how it happened so I could explain it to a future CFO without sounding like I had no idea what was going on in my own company. Which, honestly, I didn't.
Still rebuilding. The business is functional. The team is intact. I know more about our finances than I ever did, which is a strange silver lining.
Thank you again to everyone who reached out after the first two posts. You don't realize how much it helps to have strangers on the internet tell you to keep moving.