Legal Question in Business Law in California

Misappropriation of funds - public co.

Would it be considered misappropriation of company funds if an officer of a public company used company funds to pay for personal assistant services, and purchases of other goods and services unrelated to the business? Recourse options?


Asked on 4/30/09, 2:14 am

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Misappropriation of funds - public co.

The company could seek repayment, could fire the person, and could file criminal charges for embezzlement. If you are the 'company', feel free to contact me if serious about getting counsel on this.

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Answered on 4/30/09, 1:33 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Misappropriation of funds - public co.

Misappropriation of a publicly traded company's funds is a violation of the Sarbanes-Oxley Act and other federal laws. Depending on what business the company is in, there may be remedies. For example if the improper expenses are being charged to a government contract, and you were the first to report it the right way, you could be eligible for a cash bounty.

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Answered on 4/30/09, 2:55 am


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