Misappropriation Of Assets – Partnership Disputes

Property and assets are extremely important to any business and the proper handling of these assets could be the difference between success or failure of the venture. The proper handling of assets is especially critical in a partnership due to the potential for personal liability of the partners for the losses and debts of the overall business. Therefore, when one or more partners engage in the misappropriation of partnership assets, the situation should be taken very seriously and the other partners must take immediate action.

At The Casper Law Firm in Baltimore, we help Maryland partnerships resolve disputes and we stand up for the legal rights of financially injured partners. If you suspect any misappropriation of funds has occurred, please contact Ari Casper immediately to learn more about your legal options.

What Constitutes Misappropriation Of Assets?

“Misappropriation” is, simply put, another term for “theft,” as a partner takes property or assets that belong to the business without permission. Misappropriation of assets can occur in many ways and typically involves a fraudulent scheme to try to mask the wrongful taking. Misappropriation can occur in the following ways and more:

False bookkeeping entries and records;
Falsifying cash receipts or invoices;
Shrinkage of inventory;
False expense claims; or
Payroll fraud schemes.

If an audit reveals any inconsistencies with financial records or transactions, you should discuss the possibility of misappropriation with an attorney.

Possible Criminal Liability

When a partner is entrusted with partnership assets and wrongfully takes those assets for himself without permission, it can constitute the crime of embezzlement under Maryland law. Embezzlement can be a serious offense and conviction can result in extensive fines and even jail time, especially if the defendant is accused of embezzling large sums of money. However, a criminal case is separate from a civil case and, while a criminal sentence may include restitution, it is often necessary for harmed partners to seek a civil suit against the embezzler.

On the other hand, if you have been accused by other partners of misappropriating assets, there is a chance they may report their suspicions to the authorities and that you may face criminal charges. At The Casper Law Firm, we have experience in both civil and criminal defense of embezzlement and can help you defend against wrongful allegations in all related cases.

Consult with a Maryland Partnership Dispute Attorney Today

Baltimore business litigation lawyer Ari Casper is committed to helping partners harmed by wrongful actions in the partnership recover for their losses from the wrongful party. Misappropriation schemes can often be extremely complex and may go undiscovered for long periods of time, resulting in substantial losses for the partnership. In order to prove legal liability and wrongdoing, you need an attorney on your side who understands how to present evidence of misappropriation and related fraud schemes. Conversely, if you have been wrongfully accused of misappropriation of assets, it could result in substantial liability and even criminal charges. Therefore, an effective defense is imperative in the face of such allegations. If you are facing any type of legal dispute in your partnership, please call The Casper Firm at 410-989-5097 for a free consultation today.