Legal Question in Business Law in Hawaii

Diversion of Funds

I am an independent contractor for a dealership. One of my customers sent a check for goods/services to another of the dealership's independent contractors (my mentor/trainer). The check was supposed to be sent to the manufacturer (in another state) as a deposit for the goods/services. According to my mentor/trainer, it was sent. Instead, the check was deposited into an unknown local account. Four months later, the customer still has not received any goods/services. The customer did an investigation into the check, but has come to a ''dead end''. Is this diversion of funds? Am I financially liable?

Asked on 4/18/08, 12:08 am

1 Answer from Attorneys

Jon Zahaby Tour bus, scenic and sightseeing, operation

Re: Diversion of Funds

It is a Theft. You should go to the authories immediately in order to separate yourself from the Theft. If all of your actions were legitimate, then there was simply an intervening criminal act and you are not liable.

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Answered on 4/18/08, 12:41 pm

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