Legal Question in Criminal Law in Wisconsin

Theft of encumbered property is a crime in WI, so criminal investigation is possible in this scenario. However, it is also possible for the equipment to disappear for many reasons other than theft. For example, if your mortgage lender had a GBSA (general business security agreement) on your fixtures and equipment. Depending upon when their UCC was filed, they may have been entitled to sell the property and apply it to the real estate loan due to having a lien which had higher priority than your lien, although you may have been entitled to any surplus remaining after such a sale, had you properly asked for it. Some items of equipment might also arguably be properly categorized as fixtures on the real estate and therefore also were sold at the foreclosure sale. Law enforcement agencies often do not have the time or resources to investigate complex business tort situations thoroughly for possible criminal conduct and instead leave such matters to the civil courts to fight out. You should therefore protect yourself by considering private civil litigation for conversion (i.e., theft) of encumbered property if you can prove it. Additionally, testimony and other evidence developed during such a civil case might be useable in a future criminal action if criminal misconduct becomes sufficiently clear due to your civil attorney's efforts. Your outcome is also a risk which is always taken by anyone who self finances a business transfer rather than requiring cash at closing. My comments in this public web forum are intended only for public educational purposes and are not legal advice specifically tailored to you and your case. Instead, you should retain a lawyer in order to meet your legal needs, since I will be taking no action on your case. Disclosure of confidential information in a public web forum is not recommended and is always subject to being used against you in court. You are welcome to contact my Racine, WI office at 262-633-3090 or email me at [email protected] for further information. Web forum answers may contain attorney advertising materials.