Legal Question in Business Law in Florida

If investors invest money into a company, a small company, and the CEO does some of the following

1. parties 4 nights a week

2. takes his mistress on his "work" out of town meeting, even happens to coordinate travel with her trips back home- "creating work", drinks excessively before his "important business meetings".. probably goes hung over.

3. has his wifes cell phone bill paid by the company

4. is doing drugs

5. having 3somes- 5somes- afterparties

6. taking hours during the business day to go sneak with his mistress

7. uses the company to hide his affairs- takes the girls out of town and only stays in expensive hotels- more than likely so he can enjoy his evening with them...

8. the christmas party- which turned out to obbiously be a majority of personal friends partying at his house on the company $$. it was a personal and also "company" yet the party was paid for by company.

and the company fails, and the investors lose everything, can it be said that he was not doing his job properly, coming in late hung over- partying excessivly- drinking, even using the companies money to take a trip back to his mistress hometown in the guise of work, etc etc, that he his behavior and lifestyle impacted his ability to do his job, and hold him liable for some of the losses?

In general, his mindset was more about partying, drinking, doing drugs, cheating, and having after parties in which he often times has 3somes- and 5somes- leaving work to maintain an affair, using work trips to maintain an affair, its hard to believe this didnt impact the failure of his company and the loss of money by many. Seems like his lifestyle caused him to neglect his work, and even impact his work, which could be argued to of helped cause the failure of the company (constant failure to meet deadline- the product was being delivered on time, promises not being met etc,eventually it ran out of money and is struggling to survive, need more investors or its dead end)


Asked on 9/30/09, 10:08 pm

2 Answers from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

These are tough and very expensive cases to pursue and very dependant upon the quality of your proof as opposed to the recitation of third hand rumors. When you win, frequently (usually) the bum can't pay or his assets are all protected. Florida is a great place to live if you owe others money. Enron executives built big houses on the beach and live quite nicely, thank-you. O.J moved to Florida and it wasn't for the golf.

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Answered on 9/30/09, 10:17 pm
Lesly Longa Longa Law P.A.

The CEO may have breached his duty to the corporation. Assuming that you had the money to file suit and were successful, an important consideration would be whether you would be able to collect on any judgment against him personally.

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Answered on 10/01/09, 6:22 pm


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