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My wife was awarded temporary control of our company. She used our revenues to pay herself now company is shutting down.

Dallas, TX |

My wife was awarded temporary but complete control of the business I have owned and ran for decades. She has taken all the revenue from our clients and used the money for god knows what, but definitely not paying the payroll, insurance, or bills associated with the company. Besides getting the orders reversed based on her failure at her fiduciary duty, can she be brought up on embezzlement charges if it is found she used the funds for her own personal gain? My employees are about to walk out the door and without them we have no company and our clients go with someone else.

Attorney Answers 1

Posted

I assume you are asking if she can be prosecuted criminally for stealing from the company? Of course, if you can get the Dallas County District Attorney to investigate and bring those charges. But, they probably won't. The civil claim against her belongs to the company, not to you. So, you would have to bring a shareholder's derivative action in order to pursue that claim on behalf of the company. It is not at all clear in what context your wife was awarded temporary control of the business. That context could have an effect on the answer.

DISCLAIMER: This is not specific legal advice and does not establish an attorney/client relationship.

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