Legal Question in Business Law in Texas

Re: theft of corporate funds

In the "old" days we called it "embezzlement" or theft. Crafty con men learned to use phrases like "I was merely protecting your investment from crooks."

We still classify this conduct as embezzlement or theft. These inquiries should be made:

1. Was the money currency or checks?

2. Was the private safety box in the LLC's name or possibly in "[Bad guy's name] as agent for LLC?"

3. Did he spend the money?

4. Did he try to conceal this conduct before he gave the notices?

If you were on a jury in a similar situation, you likely would consider these type of questions in determining whether the man is a criminal.

Re: theft of corporate funds

It may be embezzlement or theft, depending upon the circumstances. In any event, he's committed and act of egregious stupidity.

Get with an attorney to go over the LLC's operating agreement to see what authority, if any, this partner had to do what he did.

Re: theft of corporate funds

LLCs have members and hopefully you have a written agreement clarifying who has authority to do what. You should consult an attorney to go over all the facts because, if your LLC is not in good standing, you could be liable for anything this "partner" does with the LLC's investors' money.