$2.37 MILLION DECISION IN PARTNERSHIP DISPUTE

Jun 22, 2017

partnership break
 
THE MALONEY FIRM, APC, OBTAINS AWARD OF $2.37 MILLION, INCLUDING PUNITIVE DAMAGES, FOLLOWING TWO WEEK BENCH TRIAL IN A PARTNERSHIP DISPUTE
 
Attorneys Patrick M. Maloney and Carl I. S. Mueller represented plaintiff Frontline Capital, Inc. in a two week bench trial in Department 53 of the Los Angeles County Superior Court in February and March 2017. On June 16, 2017, after considering written and oral arguments, the trial court issued its Statement of Decision, granting Frontline Capital both compensatory and punitive damages.
 
Frontline Capital alleged, and the Court found, that Matt Wiltsey had siphoned off nearly $10 million in corporate funds for himself, without pro rata distribution to Frontline Capital. Mr. Wiltsey diverted the funds through a series of companies he wholly owned, and eventually those funds landed in trusts he established to hold his home and for the benefit of his son. The Court found that Wiltsey’s testimony was not credible and that the accounting records around which the defendants built their defense had been modified and were not reliable. The Court also found that Mr. Wiltsey had backdated documents in order to make the transactions appear legitimate.
 
Mr. Maloney may be reached at pmaloney@maloneyfirm.com, and Mr. Mueller may be reached at cmueller@maloneyfirm.com.


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