Proving Misappropriation: Evidence Bronx Businesses Should Preserve

How to Build a Strong Case When Something Goes Wrong Inside Your Company

When you’re running a business in the Bronx, you don’t expect betrayal from the inside. But it happens. Maybe it starts with a strange drop in revenue, or a loyal client suddenly stops responding. Before you know it, your trade secrets, money, or customer data have been taken and used without your consent. That feeling? It’s personal. 

At Horn Wright, LLP, our team of Bronx intellectual property lawyers helps business owners take control in moments like these. You don’t have to let a bad actor get away with it. Our attorneys know how to build clear, evidence-backed claims so you can protect what you’ve built.

Understand What Misappropriation Looks Like in Bronx Businesses

Understanding how trade secret misappropriation is defined under New York law is key to recognizing when it’s happening inside your business.

Misappropriation doesn’t always show up as obvious theft. It can be quiet, subtle. It might start with someone emailing files to their personal account, or using company contacts to set up a side gig. In the Bronx, we’ve seen it happen across industries from food service and construction to logistics and retail.

This kind of misconduct usually involves:

• Sharing confidential information with outsiders
• Using business funds for personal gain
• Taking client lists to a competitor
• Logging into restricted systems without approval

Sometimes it comes from trusted employees. Other times, it’s an outside vendor who had too much access. What matters most is recognizing the signs early and keeping a record of what changes, who had access, and when it started.

Identify Key Actors Who Might Have Access to Sensitive Information

During sales or ownership transfers, businesses should pay extra attention to who gains access to sensitive assets. Confidentiality risks during Bronx M&A transactions often get overlooked, but they can open the door to serious misappropriation.

Think about your team, past and present. Who had access to your financial data, client information, or internal systems? Access doesn’t always mean intent, but it’s a starting point. Misappropriation cases often center on who had the means and opportunity.

In Bronx businesses, this could include:

• Full-time employees
• Part-time staff
• Independent contractors
• Former business partners
• Third-party vendors like IT support or marketing firms

Start by listing out roles and what they could access. Make sure you include shared logins or tools like Dropbox, QuickBooks, or Trello. Even older records matter. Someone who left months ago might still be misusing your data.

Preserve Digital Communications Without Delay

If you suspect misappropriation, digital messages can help tell the story. But they won’t stick around forever. In cloud-based tools or company chat platforms, data can disappear quickly or get deleted.

You should immediately preserve:

• Work emails (in Outlook, Gmail, etc.)
• Internal messaging apps like Slack or Teams
• Shared documents in Google Drive or Microsoft OneDrive
• Task management logs from platforms like Asana or Monday.com
• Metadata showing when files were created, edited, or downloaded

Local Bronx IT specialists can often help back up and secure this data. If needed, consider working with a forensic technician who understands both digital recovery and chain of custody rules.

Secure Financial Records That Might Show Irregularities

Numbers don’t lie, but they do need context. If money went missing or was misused, your financial records will be essential. You don’t need to be a forensic accountant. Just start by pulling detailed reports.

Focus on these areas:

• Vendor payments that don’t match known suppliers
• Unusual reimbursements or expense claims
• Payroll inconsistencies
• Duplicate transactions or unapproved charges
• Transfers between accounts you didn’t authorize

Many Bronx business owners use tools like Square, QuickBooks, or Toast POS. These systems track far more than just receipts. Export everything you can. Keep original files untouched, and document anything suspicious with dates and screenshots.

Retain Access Logs and Surveillance Footage

If someone accessed sensitive areas, physically or digitally, you’ll want proof. Access logs can provide a timeline of who was where and when. Surveillance adds a visual layer that’s hard to dispute.

Gather:

• Entry logs from keycard systems or smart locks
• Login histories from employee accounts
• IP addresses linked to suspicious activity
• Video footage from office cameras, even if grainy

In the Bronx, many businesses use Ring, ADT, or local security providers. Make sure footage is saved before it loops or overwrites. If a storage room, cash register, or back office saw unusual traffic, that footage matters.

Document Changes to Business Performance or Client Relationships

Sometimes the red flags don’t come from inside. They come from outside, through your customers. When a client mentions your pricing to a competitor or refers to a project you haven’t discussed, pay attention. Someone may have leaked that information.

Keep track of:

• Client complaints or confusion
• Canceled contracts without explanation
• Drops in recurring revenue
• Accounts moving to a rival business suddenly

Save every email, invoice, or call log that might help connect the dots. If you noticed the shift after a certain employee left or after granting someone new access, that’s a key detail.

Collect Signed Agreements and Internal Policies

Paperwork can strengthen your position. Especially when it shows that someone agreed to keep things confidential and didn’t. Don’t underestimate the value of clear, signed policies.

Look for:

• Non-disclosure agreements (NDAs)
• Confidentiality clauses in employment contracts
• Non-compete or non-solicit terms
• Technology use policies
• Internal onboarding materials that cover data rules

If you’re not sure whether a policy applies, save it anyway. Courts often look at whether the person knew what they were doing broke internal rules. Even outdated versions of your employee handbook can help. This is especially true in legal cases involving intellectual property or copyright infringement.

Consult a Bronx Commercial Litigation Attorney Early

Time matters. If you’re weighing next steps, knowing how long trade secret cases typically take in New York can help set expectations and guide your decisions.

You don’t need to wait for a full investigation to get legal help. In fact, early conversations with a Bronx commercial litigation attorney can keep you from making costly mistakes. Attorneys know how to preserve evidence correctly and how to stop further harm through legal channels.

A local attorney can:

• Help issue a litigation hold or preservation letter
• Identify which evidence matters most for your case
• Draft cease-and-desist letters if needed
• Prepare your case for court, if it comes to that

Legal experts also understand the standards set by federal and New York State laws that govern how trade secrets and proprietary information are protected.

Avoid Destroying or Altering Any Records

When you realize someone might’ve misused your data or funds, your first instinct might be to clean things up. Don’t. Altering or deleting files, even with good intentions, can hurt your case.

Instead:

• Save everything in its original form
• Avoid editing emails, logs, or payment histories
• Keep notes separate so they don’t mix with original evidence

If other employees are involved, make sure they understand this too. One accidental change to a document could create doubt later. The stronger your evidence trail, the better your position will be.

Preserve Now, Protect Your Business Later

Misappropriation doesn’t always announce itself. But once you notice the signs, you have to act. Keep your records intact. Save digital messages, financial logs, contracts, and anything else that helps tell the story. Whether you’re running a small catering company near Yankee Stadium or a multi-location storefront across Fordham Road, your business deserves protection. When you’re ready, reach out to our team for guidance that helps you move forward with confidence.