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How can this person improve their situation?

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  This is the problem the employee is having:  
I work in a very small company (7 employees) which is a franchise of a large corporation.

I am very frustrated with my boss. He has been with the company for 3 years. The first year was okay, but things have gotten progressively worse since then.

He is currently living on property (a direct violation of corporate standards) and is using the company's money (petty cash, telephone, and credit card) for personal use-mainly food and personal phone calls. I am not even going to mention the work he is supposed to do and does not.

The owner of the company does not live in the area and I am not sure he knows what is happening. He is spending $50-$100/month on personal phone calls and uses the credit card almost daily.

The last time I confronted him about an issue, he got upset, changed my work schedule, sent me an email about the changes with a cc to the owner. owner.

All my co-workers know this is happening and as their immediate supervisor, I feel I need to do something. He is currently looking for a job out-of-state and I will be taking over his position.

I am afraid if I confront him, he will fire me or say that I am the one spending the company's money (I have proof of the phone cards and do not yet have the company credit card he is abusing.)

Since I have not mentioned this to my owner before, I am concerned that he will think I just want to take over now.


  Please suggest some advice for this employee:  

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