Misappropriation of assets is a serious offense that can severely cripple the efficiency of a business. The property and funds of a company are needed to allow the company to continue to conduct business properly. Unfortunately, if your business partner is embezzling the assets of the company, this creates both business and criminal law issues. If you discovered that your business partner was misappropriating assets, you should consult with an experienced Baltimore misappropriation of assets partnership dispute attorney.
The business litigation attorneys at the Heyman Law Firm understand the shock that may come from learning that your business partner is dishonest, and we are here to represent you. Our legal team possesses years of experience handling a wide range of business dispute claims, and we will use this experience to help you hold your business partner accountable for his or her actions. To schedule a confidential legal consultation to discuss your claim, call the Heyman Law Firm at (410) 305-9287, or contact us online.
How Does the Misappropriation of Assets Occur?
Misappropriation of assets happens many ways. Essentially, misappropriation of assets is another term that is used to define forms of theft that occur within a business. A business partner who misuses company funds either for personal gain or for another inappropriate reason can be held liable for misappropriation,
The following is a list of common types of misappropriation of assets.
Embezzlement
Embezzlement is the act of appropriating funds that were entrusted to your care. As the partner of a business, it is expected that a person will have access to all of the company’s assets which will make it easier for them to misuse these assets.
Taking a company’s assets when you have a fiduciary duty to protect those assets is a prime example of embezzlement. A fiduciary duty means that an individual is obligated to take actions to protect the best interests of the business they operate. Unfortunately, some partners do not take those duties seriously.
Fraudulent Expense Reports
Another way that a partner may misappropriate company assets is by creating fraudulent expense reports. These reports are used as cover for what the partner is actually using the partnership’s funds to purchase. For example, if a partner uses company funds to schedule a private vacation that is masked as a business trip, this constitutes misappropriation of assets.
Inventory Shrinkage
Inventory shrinkage occurs when a company’s accounting records show excess assets that do not actually exist. This can signify that a partner is secretly taking company assets. If you suspect that your partner is purposely misreporting company assets, you should conduct a physical count of the company’s inventory and work with your accounting firm and attorneys to investigate. This will allow you to get solid evidence that your partner is engaged in misappropriation.
There are various other schemes that an individual could use to misappropriate assets. To learn more about how to combat these schemes, you should speak with an experienced Maryland misappropriation of assets lawyer.
When to Sue for Misappropriation
If you wish to file a lawsuit against a partner who misused company assets, you should not delay in making your claim. You need to be mindful of the statute of limitations for the type of case that you need to file.
The statute of limitations determines how long a plaintiff has a particular type of case with the court. In Maryland, lawsuits based on fraud have a three-year statute of limitations. This means that you must file your case within this timeframe or risk having the court bar your claim. However, it may be possible to delay your filing deadline under certain circumstances.
Before you file a lawsuit against your business partner, you should ensure that you have sufficient evidence of wrongdoing. To prevail in a claim for fraud, you must prove several different elements. It is not enough to simply accuse your business partner of misappropriating funds because they had access to those funds. You must have clear and convincing evidence.
Our firm can help you build your case against a deceptive business partner who is recklessly putting your company in danger.
Our Baltimore Partnership Dispute Lawyers Can Help File a Claim Against Your Business Partner
Operating a successful business is not an easy task for any person. However, this task is made exponentially difficult if you have to deal with a business partner who is using company funds for their personal gains. At the Heyman Law Firm, our partnership dispute lawyers can help you resolve a misappropriation of assets issue that may arise in your business. To schedule a confidential legal consultation, call the Heyman Law Firm at (410) 305-9287.