News & Analysis as of

Personal Liability Fraud

Stradling Yocca Carlson & Rauth

California Business Divorce: Partner Fraud and Personal Liability - Important Lessons from Bartenwerfer v. Buckley

The Story Behind the Case - Kate and David Bartenwerfer started their business with a straightforward plan. The couple decided to renovate and sell a house they jointly owned in San Francisco. David handled the remodeling...more

Vinson & Elkins LLP

Failure to Act: SEC Brings Individual Charges Against CFO and Audit Committee Chair in Corporate AI Fraud Case

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On September 16, 2024, the United States Securities and Exchange Commission (“SEC” or the “Commission”) brought charges against Kubient, Inc.’s (“Kubient”) former chairman and chief executive officer (“CEO”) for allegedly...more

Fenwick & West LLP

SEC Charges AI Co. Audit Cmte. Chair with Failing to Adequately Investigate Report of Financial Misdeeds, Signing 10-K Containing...

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On September 16, 2024, the Securities and Exchange Commission (SEC) filed civil charges against former CEO Paul D. Roberts, former Chief Financial Officer Joshua A. Weiss, and former Audit Committee Chair Grainne M. Coen of...more

Freiberger Haber LLP

First Department Reminds Practitioners that “proofreading is an essential, indispensable tool in the drafting of contracts”

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It should go without saying that people make mistakes. After all, people are human, and humans make mistakes. When people draft a document, especially a lengthy or complex one, it is not uncommon for a mistake to be...more

Latham & Watkins LLP

Food for Thought: Individuals Remain in SFO’s Sights as Four From Patisserie Valerie Charged With Fraud

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Individuals continue to face risk from prosecutions for economic crime, despite media focus on corporate criminal liability reforms. Four individuals have today appeared at Westminster Magistrates’ Court charged with fraud...more

Saul Ewing LLP

Northern District of Illinois: Personal Liability Against Construction Company CEO and President for Breach of Contract and Fraud

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A federal jury in the Northern District of Illinois recently awarded nearly $23 million to the developer of a luxury hotel in Chicago’s trendy West Loop arising from multiple breaches of contract and fraud by its...more

Patterson Belknap Webb & Tyler LLP

Commercial Division Rejects Piercing the Corporate Veil and Claims of Fraud and Unjust Enrichment Against the Sole Principal

In Salesmark Ventures, LLC v. Jay Singh, JJHM Trading Corp.,  Justice Joel M. Cohen dismissed, inter alia, the plaintiff’s claim to pierce the corporate veil of the defendant and impose personal liability on the defendant’s...more

Haynsworth Sinkler Boyd, P.A.

Amalgamation Does Not Include Individuals

The South Carolina Supreme Court recently provided additional guidance about the application of the doctrine of amalgamation/single business enterprise theory in Stoneledge at Lake Keowee Owners’ Assoc., Inc. v. IMK Dev....more

American Conference Institute (ACI)

[Event] 10th Edition of Fraud, Asset Tracing & Recovery - January 24th - 25th, Miami, FL

ACI’s and C5’s 10th Edition of Fraud, Asset Tracing & Recovery Miami conference is returning on January 24 – 25, 2022 in person! Deemed as the foremost, can’t-miss event for the Fraud community, it gathers the pre-eminent...more

American Conference Institute (ACI)

[Event] Anti-Corruption London - November 2nd - 3rd, London, United Kingdom

C5's 15th International Conference on Anti-Corruption London will take place November 2 – 3, 2021 in Millennium Hotel London Knightsbridge, London. Join your peers for the IN-PERSON reunion of the legal and compliance...more

Patterson Belknap Webb & Tyler LLP

Appeals Court Rules That a Discharge Injunction Bars a Fraudulent Transfer Claim Based on a Non-Dischargeable Debt

A discharge of debt in bankruptcy “operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of...more

Freeman Law

Boo! — Personal Liability Exposure for Your Business’ State Taxes

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Halloween is just around the corner, and if you thought this year could not get any scarier, think again. Failure to remit your business’ taxes to the state may result in a personal visit by the Office of the Texas...more

Lathrop GPM

Shield Yourself From Liability for Your PPP Loan

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A Florida business owner facing criminal charges serves as a cautionary tale: think twice before using Payroll Protection Program funds to upgrade to a Lamborghini. And, think a third time if you believe you are...more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Pierce the Veil and Get to Mr. Shade

Dear YouDig? When we first met, the contractor’s owner pulled into the site in his tricked out red pickup and promised us the stars and the moon. Unfortunately, all we ended up with was the pits! We ended up with a leaky...more

Troutman Pepper Locke

Ohio Federal Court Declines to Dismiss Action Against the Officer of a General Contractor Who Allegedly Submitted False...

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Decker Constr. Co. v. Wesex Corp., No. 2:18-cv-727, 2019 BL 232653 (S.D. Ohio June 24, 2019) - In Decker Construction Co. v. Wesex Corporation, the United States District Court for the Southern District of Ohio declined to...more

Hinshaw & Culbertson LLP

Seventh Circuit Affirms: Attorney Personally Liable for Aiding and Abetting Mortgage Fraud Scheme

Fifth Third Mortgage Co. v. Kaufman, No. 18-3295 (7th Cir. Aug. 9, 2019) - Brief Summary - The Seventh Circuit affirmed a ruling that an attorney was personally liable for aiding and abetting a mortgage fraud scheme....more

Fisher Phillips

Employers Can Be Held Individually Liable For Unpaid Wages In Colorado

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The Colorado Court of Appeals recently held that the Colorado Wage Claim Act does not categorically bar individual liability for unpaid wages, rejecting arguments that a 2003 Colorado Supreme Court decision precluded any and...more

Morgan Lewis

One of the Largest Member Clubs in Singapore Is Liquidated

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California Fitness’s closure has left many consumers who have purchased prepaid packages without any remedies. On 20 July, California Fitness, which was once fronted by action movie star Jackie Chan, announced that it...more

Mintz - Health Care Viewpoints

Another Jury Acquits in One of the First Few Prosecutions of Health Care Executives Following DOJ’s Yates Memo

Last month, we reported on a Massachusetts federal court jury’s decision to acquit the former CEO of Warner Chilcott in one of the first prosecutions of a health care executive following the Department of Justice’s (“DOJ”)...more

Holland & Knight LLP

Supreme Court Reverses Fifth Circuit's Interpretation of "Actual Fraud"

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In a resounding 7-1 decision, the U.S. Supreme Court resolved an existing split among the U.S. Circuit Courts of Appeal, determining that "actual fraud" under Section 523(a)(2)(A) of the U.S. Bankruptcy Code does not require...more

Cole Schotz

Affirmed: New York’s Application of the In Pari Delicto Doctrine Bars Faithless Servant Claim and Bankruptcy Insider Exception

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A recent decision of the United States District Court for the Southern District of New York (the “District Court”), affirming a decision of the United States Bankruptcy Court for the Southern District of New York (the...more

Mintz - Bankruptcy & Restructuring Viewpoints

Piercing The Corporate Veil Takes More Than Just Fraud By The Individual

Many of us have endured the nightmare of a disastrous home renovation or at least enjoyed Tom Hanks in The Money Pit (How long? Two weeks, of course). Well imagine spending half a million dollars, not for a new and improved...more

Porter Hedges LLP

Construction Alert: "Personal Liability for Fraudulent Pay Applications"

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A false notarized payment application signed by a Contractor and submitted to an Owner may make both the Contractor and the person who signed the false application personally liable for damages suffered by the Owner. ...more

Dorsey & Whitney LLP

New Justice Department Directive Underscores Focus on Individuals—and Importance of Cooperation—in False Claims Act Investigations

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In a recent memorandum issued to Main Justice litigating components and United States Attorney’s offices nationwide, Deputy Attorney General Sally Quillan Yates emphasized that “fighting corporate fraud and other misconduct”...more

McGuireWoods LLP

Fraud Means a “Fairer” Price: In re Dole Finds CEO and COO Personally Liable for Over $148 Million in Damages

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On August 27, 2015 the Delaware Court of Chancery issued a post-trial decision, In re Dole Food Company, Inc. Stockholder Litigation, that held two of Dole’s directors, David Murdock and Michael Carter, personally liable for...more

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