A Former Partner Kept Company Money. How a North Carolina Business Owner Recovered Funds
The firm describes how accounting records and the parties’ agreements helped resolve the disputed transfers.
The questionWhat can a business owner do when a former partner moves company money into their own accounts?
Illustrative example
CHARLOTTE, N.C. — A Charlotte marketing firm has recovered $410,000 from a former partner who moved company money into his own accounts in the months before he left.
He said the transfers were advances on profits he was owed.
The transfers drained the company's reserves just as it lost a major client.
Mirravane Law hired a forensic accountant to trace the transfers and compared them with the operating agreement, which required both partners to approve any distribution.
The former partner agreed to repay $410,000 and give up his remaining interest in the company.
He did not admit wrongdoing. The company's legal and accounting costs were not reimbursed.
Operating agreements that require joint approval of payments give owners a clear standard to measure disputed transfers against.
About this story
Submitted by the firm. Source review: confirmed against public court records. See our publication standards.
