This case takes place in New York and involves a breach in fiduciary duty by an accountant. The plaintiff is the owner of a large farm equipment dealership. The defendants were, at the time of the incident, employees at this dealership. The plaintiff entered into a vehicles flooring and security agreement with a bank to finance new and used farm vehicles and equipment. Initially, the floor plan required the plaintiff to provide specific documentation for all vehicles acquired by means of the floor plan line of credit. This documentation included the VIN and the manufacturers invoice for every new vehicle that was sold. The defendants controlled every aspect of the business, including the day to day accounting, using Quickbooks software to organize and facilitate creation of all financial statements. Once financial statements were finalized, they were uploaded into the manufacturer’s database for reporting purposes. Each month, the defendants generated funds from the sale of illusory vehicles and equipment. It is claimed that the defendants distorted financial reports, took the plaintiff’s funds for their own purposes, and as a result caused the dealership to suffer severe financial losses. Expert witnesses with specialization in crisis management and forensic accounting were retained for this case.
