Theft By Corporate Officers

Outcome: Disclosed Executive Theft; Officers Fired; Favorable Client Settlement

A director of a foreign corporation heard a rumor that a subsidiary of his corporation had secretly purchased a failing U.S. vendor and that the vendor was being surreptitiously operated from within subsidiary’s office by subsidiary employees. We determined that the president, chief financial officer, and outside counsel of the subsidiary had diverted the vendor revenues to a bank account maintained by outside counsel. Parent corporation fired president, CFO and outside counsel and filed a lawsuit against them resulting in a favorable settlement.