Legal Question in Business Law in Michigan

Embezzlement from a private corporation

My bosses,co-owners of a corporation, received a check from a lien settlement made out to the corporate name for a loss claimed in an earlier year. They want to cash the check, keep the money for themselves and not run it through the corporation. Is this legal? I am on the board of directors and their accounting manager. Am I liable for their actions since I know what is going to happen?


Asked on 4/04/00, 7:23 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Embezzlement from a private corporation

Under certain circumstances this can be considered income to a corporation especially if the amount of settlement is greater than the loss. The point here is tax evasion which the IRS and the state of michigan really frown upon. You could possibly be held as an accessory since you knew about it and did nothing.

Patrick Tracy

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Answered on 4/19/00, 6:00 am


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