Question: John is a waiter at a local diner. The diner has a policy that tips are to be pooled between the waiters. Accordingly, each night

John is a waiter at a local diner. The diner has a policy that tips are to be pooled between the waiters. Accordingly, each night the cash tips are collected, pooled, and divided up between the various waiters. Then, when employees are paid by the diner, their share of the tips is included in each waiter’s biweekly check. John has determined that since he works harder than everyone else, it is not fair that he has to share his tips. To compensate himself for his hard work, each night he takes half of every tip he collects and puts it in the pot—the other half he keeps. What kind of fraud is John committing?


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