I need a lawyer to pursue a GP who has ineptly attempted embezzlement of his own fund.

I heading the LPs to sue in Chicago. hfhamilton@gmail.com
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Answers (2)

Erik Glen Swanson

Erik Glen Swanson

Contributor Level 7
If you need an attorney, you should contact one :)

You don't really state enough facts in your question to allow anyone to determine if you have a cause of action and/or if you need a specialist in a certain field. Barring this, any attorney handling commercial litigation may be able to help you.

My firm handles such cases and I would be happy to hear more about your situation to determine if it is something I can assist you with.
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Mazyar Malek Hedayat

Mazyar Malek Hedayat

Contributor Level 5
You write that you need a lawyer in order to sue a General Partner on behalf of a series of Limited Partners. The suit arises from the General Partner's alleged embezzlement.

To begin with, a GP owes fiduciary duties to Limited Partners. We could take a book to discuss what fiduciary duties are, so for our purposes let's just say they involve the same duties owed by a director to shareholders, by a parent to their child, or by a guardian to their ward. The test is the best interests of the LP's.

If the GP really embezzled (i.e. stole) funds belonging to the general partnership - without authorization and in a way that negatively affects the interests of the LP's, then the proper cause of action is a derivative suit. Unlike a regular breach of contract or fraud action, a derivative suit is brought on behalf of the company; but beware, the bylaws of the general partnership may first require certain steps to be taken before a derivative suit can be brought. Failure to follow those rules will invalidate the suit.

Finally, before taking any action you should first attempt to determine what was done, how much it cost the general partnership, etc. You may have to bring in a third-party such as a forensic accountant in order to do the necessary investigation in this regard.

I hope this information has been helpful. Feel free to contact us if we can be of further assistance.
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