When Trust is Broken: Navigating Embezzlement in Dental Practices

Building an authentic dental practice requires trust in your team—but what happens when that trust is violated? Dr. Allison House shares her personal experience with embezzlement and offers guidance for dentists who suspect something isn't right with their numbers.

The Warning Signs of Embezzlement

As dental practitioners, we pour our energy into patient care, clinical excellence, and building meaningful relationships. With so much focus on providing exceptional dentistry, the business side of practice management often becomes something we delegate to trusted team members.

But what happens when the numbers don't add up?

In a recent episode of The Authentic Dentist podcast, Dr. Allison House shared a concerning situation brought to her by a young dentist who had recently purchased a practice. The new owner noticed daily discrepancies between what should have been deposited in the bank account and what actually appeared. Combined with secretive behavior from the office manager (who had stayed on from the previous owner), these yellow flags raised important questions.

When Personal Experience Becomes Professional Wisdom

Dr. House didn't need to speculate about the possibility of embezzlement—she had lived through it herself.

"I trusted this person so much," Dr. House reveals about her former employee who stole approximately $100,000 over an 18-month period. What makes this story particularly striking is that the employee had been with the practice for ten years but only began stealing after being promoted to office manager.

The revelation came during COVID when unexplained withdrawals appeared that couldn't be attributed to normal business expenses during a time when the practice was essentially closed. After firing the employee and bringing in a professional embezzlement investigator, the full extent of the theft became clear.

"The amount that I sued for was $53,000. And I won. The actual amount is closer to 100," Dr. House shared.

Finding the Balance Between Trust and Verification

For dental practice owners, embezzlement creates a difficult paradox. We need to trust our team members to function efficiently, yet we must also implement systems that protect the practice.

"If you own the business, you personally cannot do everything. It's just not possible unless you decide not to do the dentistry anymore," Dr. House notes. "So you have to trust some people."

This balance becomes especially challenging after experiencing betrayal. How do you move forward without becoming paranoid? Dr. House emphasizes implementing proper safeguards while still maintaining a culture of trust:

"I don't want to immediately jump to somebody stealing from me. And at this moment, I have a lot of safeguards in place for supplies, for collections, for accounting."

Professional Help: When to Bring in Experts

For dentists who suspect potential embezzlement, Dr. House recommends bringing in specialists rather than trying to investigate alone. She specifically mentions two respected professionals in this field:

• David Harris with Prosperident

• Susan Gunn

"I thought my accountant would catch things. My accountant didn't catch anything. That's not their job," Dr. House explains. "An auditor is not the same as an accountant."

For the young dentist with the suspicious office manager, Dr. House recommended having professionals conduct a thorough audit—ideally on a weekend when normal operations wouldn't be disrupted. This approach provides concrete evidence before making any significant personnel decisions.

Creating an Authentic Practice Culture While Protecting Your Business

Building an authentic dental practice requires balancing open communication and trust with appropriate business protocols. For practice owners concerned about potential embezzlement, consider these steps:

1. Implement clear financial systems that create transparency in how money flows through your practice

2. Establish separation of duties where possible, so no single person controls all aspects of your finances

3. Conduct regular audits of your practice finances with professional assistance

4. Foster an ethical team culture where integrity is valued and rewarded

5. Trust but verify by maintaining appropriate oversight of financial operations

Leading with Integrity When Facing Difficult Situations

Perhaps the most challenging aspect of potential embezzlement is the emotional toll it takes. As dentists, we often develop close relationships with our team members, making potential betrayal particularly painful.

"The messiest part of any business is the fact that people deal with other people," notes Shawn Zajas, co-host of The Authentic Dentist podcast.

When facing these challenging ethical situations, authenticity becomes even more crucial. Being transparent about expectations, responsive to red flags, and willing to have difficult conversations all reflect the kind of authentic leadership that dentistry needs.

Finding Support Through Authentic Connection

If you're currently dealing with suspected embezzlement or other practice management challenges, remember that you're not alone. As Dr. House mentions, "The number of dentists that have been scammed is unbelievable. Physicians, realtors, lots of people have been scammed who are sophisticated, smart people."

Reaching out to mentors, joining study clubs, or connecting with experienced colleagues can provide valuable support and guidance. The dental community thrives when practitioners support each other through both clinical and business challenges.

As Dr. House encourages at the end of the episode: "If you're having some challenges, you can always reach out to me. We often have podcasts on these things... There's lots of help—don't suffer in silence."

The Authentic Dentist podcast bridges the gap between clinical excellence and personal fulfillment in dentistry. Hosted by Dr. Allison House and Shawn Zajas, the show addresses not just what dentists do, but who they are and how they show up in their practice and life.