Legal Question in Business Law in New York

Liability of a Corporate Officer

How does one sue a corporate officer (CFO) who uses his personal friendship with you to solicit a $10,000 loan for his company, which is 2 years delinquent in paying back the loan, doesn't respond to you, doesn't answer summons, pretends not to reside where it is legally addressed and which is generally using it's corporate status to avoid responsibility for the debt. We summoned the corporate officerl (pro se) to civil court which threw out the case saying we must sue the corporation. We summoned the corporation via the secretary of state and are waiting to see if the plaintiff will respond or default. We feel that somehow it would be more effective to go after the individual corporate officer who denies any responsibility for having solicited this loan. How can we make this individual accountable, in light of the difficulty in confronting the corporation?

Asked on 8/04/99, 5:30 pm

1 Answer from Attorneys

Gerry Elman Elman Technology Law, P.C.

Re: Liability of a Corporate Officer

It would be wise to ask a lawyer in New York if the "loan" might be considered a "corporate security" that falls under federal or New York securities laws. If so, then the lender should have the protection of those laws. And there are serious penalties for violations, which might amount to "securities fraud."

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Answered on 8/06/99, 7:29 am

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