Category Archives: Fraud
Imputation Where the Employee’s Fraud Benefits the Employer
Where a corporate insider’s fraud harms a third party, an important, if not dispositive, issue will become whether the knowledge of the insider committing the fraud is imputed to the corporation. Wardley Better Homes and Gardens v. Cannon, 2002 UT 99, 61 P.3d 1009 and Hodges v. Gibson Prods. Co., 811 P.2d 151 (Utah… Read More »
The Absolute Judicial Privilege
Claims made in a lawsuit may harm a defendant’s reputation, especially where the defendant is a professional, such as a lawyer or an accountant. The judicial privilege bars claims based upon allegations in a lawsuit, as well as statements made before the litigation is initiated, such as in a demand letter, as long as… Read More »
The Adverse Interest Exception – Imputation of a Control Person’s Knowledge to the Corporation
For an agent’s knowledge to be imputed to his principal, the agent’s conduct, even if fraudulent, must in some way benefit the employer. Imputation of a control person’s knowledge becomes critical in fraud cases where the insider’s knowledge will defeat the corporation’s claim, for example against an auditor. If an insider, such as the… Read More »
Ten Indicia of Fraud
1. You cannot invest money you cannot afford to lose. You have to be able to lose 100% of your investment with a zero impact upon your financial stability. In poker, someone who cannot lose everything he has on the table is playing with scared money. In auto racing, where they drive a car… Read More »
