"You've got to look out for yourself" — Shark Tank mentor Robert Herjavec cautions against scams

On December 24, 2024, Shark Tank mentor Robert Herjavec shared an Instagram reel that resonated with entrepreneurs, urging them to remain cautious in business dealings. He said,

"I've had people do horrible things to me in business. People that work for me, competitors, everybody. You've got to look out for yourself."

Herjavec recounted an incident involving a trusted employee who exploited his position for personal gain. In the reel, Herjavec narrated how a departing marketing head revealed a shocking truth about Bob (not his real name), the company’s sales manager.

“She came to me and said, ‘You’re such a great boss. There’s something I have to tell you,’” Herjavec recalled.

The employee revealed that Bob had been running a separate business with a similar name, redirecting company orders and cashing the profits. Herjavec’s subsequent investigation confirmed the claims, leaving him both disappointed and alert to the vulnerabilities of trust in business.

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Shark Tank mentor talked about the discovery of this scam

Shark Tank mentor Herjavec’s journey to uncovering the fraud began with a conversation with a colleague. As his marketing head prepared to leave for another job, she shared information about the company’s sales manager.

"She said, ‘Bob is funneling half the deals to his own company,’” Herjavec said.

At first, he was shocked but decided to look into records of deals they had lost to see if anything was unusual. Herjavec contacted one of the supposed “lost” clients, but their response was unexpected.

“I don’t know what you’re talking about. We actually did buy from you,” they replied.

This led him to dig deeper. He discovered that Bob had set up a company with a name similar to Herjavec’s business.

"He was taking orders for us, fulfilling them through his own company, and cashing the checks," Herjavec explained.

Robert said that this fraudulent scheme not only cost the company money but also confused clients and hurt its reputation. For Herjavec, it was a clear reminder of why it is important to check for irregularities and have processes to ensure transparency. He warned the entrepreneurs that even with trusted employees, staying alert can prevent these kinds of issues from happening.

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Robert's perspective on balancing trust with accountability in business

Shark Tank mentor Robert Herjavec shared, as he reflected on his experience,

"I trusted him to handle our sales, and he exploited that trust."

He mentioned that this situation showed the importance of having systems in place to balance trust and oversight. Regular checks and clear communication within the team can help reduce risks and ensure everything runs smoothly. Transparency, Herjavec explained, helps maintain trust while keeping everyone accountable.

“It’s hard to believe when someone close to you does this,” Robert said explaining how such incidents can make it difficult to trust others.

The experience taught him to balance caution with trust, essential for a healthy work environment. Though challenging, he saw it as a valuable lesson in safeguarding his business.

He encouraged Shark Tank entrepreneurs and every business owner to stay alert and take steps to secure their operations.

“Protect yourself and your business. People can surprise you in ways you don’t expect,” he said.

Robert urged that by being careful and having safeguards in place, business owners can handle challenges while building a team based on trust and responsibility.

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