Legal Question in Civil Litigation in California

Fraud statue

I know the fraud statue of limitation is 3 years and the clock starts ticking at discovery. My question is what determines when it's discovered? Example. The CFO went to the President in Feb 2003 that she suspected embezzlement. The President told her to prove it, she did nothing. Then in March 2004 she finally did an audit of the books and discovered fraud. When did the clock start ticking? At the time when she suspected it, but did nothing to prove it, or when the audit finally revealed it? Your response would be very helpful so I know who to proceed with a case.


Asked on 8/28/07, 1:03 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Fraud statue

I do not understand your last half sentence. The test is the general one normally applied of a reasonable person acting with reasonable speed. Once she had notice that there might be a crime being committed, 2/03, the Statute would start. But the Statute is probably longer for the criminal aspects of the action, plus it probably continued on. In the criminal case, the DA can ask that restitution be made to the Company.

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Answered on 9/04/07, 7:17 am


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