Norris McLaughlin & Marcus, P.A.

Blogs > Shareholder Disputes in New Jersey

Fraud issues

Jan 26, 2015

Are Dividends A Mask For Financial Fraud?

Previously on this website, I wrote about how a recession can help an unscrupulous business partner hide his fraud (Nov. 2008). For example, I explained that “tough economic times” can be used as an excuse to stop paying dividends or providing other financial benefits to minority shareholders.  However, it can be equally true that a stronger economy, like we may be experiencing at the moment, can also be used to mask fraud.» Read More

Aug 27, 2013

Discovering Fraud By Your Business Partner: Act Now or Forever Hold Your Peace?

When you catch your partner in a breach of trust, can you ever trust him again?  And even if you can, are you better off just moving on separately, or can the relationship ever really be repaired?

It may sound like this article is discussing a marriage, but that is what a business partnership is like in some cases.  In fact, one judge in New Jersey often refers to business separation litigation as a “corporate divorce.”

A breach of trust with your business partner can occur in many ways, from finding out that he or she has opened a competing business to discovering that he has been reimbursing himself for wildly expensive and purely personal expenses for years, always hiding the evidence from you. » Read More

Mar 15, 2013

If You Suspect Your Business Partner is Cheating You, Listen To Your Gut and Seek Legal Advice

When you are a small business owner, your business partner is often the closest person in your life, besides your spouse.  Many would agree that if you suspect your spouse is cheating on you, he or she probably is.  At the least, there is a major problem in the marriage.  The same rule of thumb applies to your business partner – if you suspect that your business partner is somehow cheating you (as opposed to cheating ON you), he probably is. » Read More

Nov 25, 2008

How Your Business Partner Can Use a Recession to Hide His Fraud

Tough economic times can sometimes be used by one’s unscrupulous business partner to mask his fraudulent activities.  In times like these, minority owners who suspect improper activity by the majority should be more vigilant than ever.

Often minority shareholders, especially those not intimately involved in the business, simply get used to receiving little financial information about the company.  The attitude often is, there’s no cause for alarm as long as the dividend checks keep coming. » Read More

Apr 08, 2007

Fraud By The Majority

When you suspect that your New Jersey business “partners” may have committed fraud, either on someone else or upon you, what steps should you take, and what remedies might you have? In New Jersey, certain steps often must be taken as quickly as possible, including retaining a forensic accountant who has experience in uncovering fraud and testifying in court. And certain pitfalls must absolutely be avoided.» Read More

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