Fraud and Embezzlement
Many disputes involving businesses include claims of fraud, negligent or even innocent misrepresentations to customers, clients or third parties. All too often fraud is accompanied by theft of corporate assets and embezzlement by trusted employees. Remedies for fraud or misrepresentation are provided by the common law and by statutes, including the Connecticut Unfair Trade Practices Act (“CUTPA”). The attorneys at Hurwitz, Sagarin, Slossberg & Knuff, LLC have represented companies and professionals accused of making misrepresentations in their business dealings and also companies which have been the victims of fraud, misrepresentations or embezzlement. Our lawyers are able to assess when there are remedies for fraud or misrepresentation such as punitive damages and attorneys’ fees more extensive than merely recovering actual damages under the common law.
Matters in which attorneys at HSSK have represented businesses or individuals in connection with claims of fraud or misrepresentation include:
- Represented environmental firm to recover theft of corporate opportunities by corporate officer fraudulently concealed from the company. Westcott & Mapes v. Marseglia, NNH CV 10-6015226S (Conn. Super. Ct.).
- Connecticut counsel for plaintiffs in securities fraud federal court class action against business machine corporation. See Carlson v. Xerox Corp, 596 F.Supp.3d 400 (D.Conn.); aff’d, 355 Fed. Appx. 523, 2009 WL 4640661 (2d Cir. 2009).
- Represented real estate purchaser in action against broker who took and failed to return deposit to purchase real estate for investment purposes, obtaining judgment for treble damages, attorney’s fees and interest. See McCarthy v. Cimini, 2007 WL 4571173 (Conn. Super. Ct. Nov. 28, 2007).
- Co-counsel representing magazine publisher in action alleging that publisher had breached contract and made misrepresentations in connection with the printing of a book. See SLC Turnberry, Ltd. v. The American Golfer, Inc., 240 F.R.D. 50 (D. Conn. 2007).
- Represented defendant limited liability company and its alleged sole member in actions in which California corporate creditor brought action alleging violation of CUTPA arising out of alleged “bust out scheme” to place debtor’s assets out of creditor’s reach. See Master-Halco, Inc. v. D’Angelo,, 351 B.R. 287 (D.Conn. 2006).
- Represented plaintiff home purchaser in successful action against vendor to obtain recession, resolution and prejudgment interest based on fraud and negligent misrepresentation in connection with statement about boundary. See Wallenta v. Moscowitz, 81 Conn. App. 213, 839 A.2d 641 (2004).
- Co-counsel in pursuing recovery of more than $15 million embezzled by bookkeeper for major development company. Bourke and Matthews Contracting Co., Inc. v. Muldoon, 3:05CV01930 (SRU).
- As Trial counsel, obtained jury verdict for fraud and misrepresentation in real estate transaction. Wallenta v. Moscowitz, 81 Conn.App. 213, cert. denied, 268 Conn. 909 (2004).
- Represented lighting business seeking to recover monies embezzled by bookkeeper. Shemitz Lighting, Inc. v. Hartford Fire Ins. Co., 28 Conn. L. Rptr. 533, 2000 WL 1781840, (Conn. Super. Ct. May 9, 2000).
- Represented major real estate developer in action in which seller of commercial shopping centers alleged developer had made misrepresentations and had tortiously interfered with contract between seller and its employee. See Beckenstein Enterprises-Prestige Park, LLC v. Lichenstein, 37 Conn. L. Rptr. 627, 2004 WL 1966863 (Conn. Super. Ct. Aug. 11, 2004).
- Co-counsel in defense of civil RICO and unfair trade practices action by liability insurer alleging that defendant billed insured’s for services not provided. See Allstate Insurance Co. v. Seigel, 312 F.Supp.2d 260 (D. Conn. 2004).
- Connecticut counsel for plaintiffs in securities fraud federal class action on behalf of purchasers of common stock in secondary public offering against genomic sequencing company and its officers and directors. See In re PE Corporation Securities Litigation, 221 F.R.D. 20 (D.Conn. 2003).
- Connecticut counsel for plaintiffs in securities fraud federal class action against corporation and its officers and directors alleging misrepresentation of corporation’s financial condition. See In re Mercator Software, Inc. Securities Litigation, 161 F.Supp.3d 143 (D.Conn. 2001).
- Represented defendant law firm in federal action alleging violation of securities laws, misrepresentations and breach of fiduciary duty in connection with sale of condominium project.
- Represented defendant stock brokerage firm in action by estate to recover funds allegedly stolen from brokerage account by stockbroker by means of forged checks.
- Represented plaintiffs in securities class action alleging misrepresentations in connection with the sale of limited partnership interest; case settled for $3.4 million, representing 86 percent of the plaintiffs’ original investments.
- Represented former President of iron works that constructed works by artist Alexander Calder in action claiming conspiracy to defraud purchaser concerning Calder work constructed by the company. See Andre Emmerich Gallery, Inc. v. Segre, 1997 WL 672009 (S.D.N.Y. Oct. 29, 1997).Represented plaintiffs in securities class action alleging misrepresentations in connection with the sale of limited partnership interest; case settled for $3.4 million, representing 86 percent of the plaintiffs’ original investments.
- Represented defendant stock brokerage firm in action by estate to recover funds allegedly stolen from brokerage account by stockholder by means of forged checks.