What to do about fraud comitted by a property manager?

Question Details:

I am an owner of a business in Raleigh/Durham area. We market low income housing in the Durham area. We hired a property manager who knowingly committed fraud, by lying about rents that were not collected, causing tenants to be potentially evicted, setting up a leasing company under her name, based on business we established and stealing rent monies collected. What recourse do we have? We need an attorney in the Durham, NC area.

Asked 4/19/2010 under Business | 883 View(s) | More Legal Topics

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Business Law Answers

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney Answered 2 years ago | Contributor

1) You can sue her. Fraud that causes you economic loss is certainly something you can bring a lawsuit over to recover money; similarly, you can sue over out and out theft. When you her, be sure to sue her for ALL you losses, including any additional costs that you have had to incur owing to her actions, and not just the direct losses.

2) You can also report her to the police: fraud (which is theft by deception) and theft (specifically conversion, or taking someone else's property entrusted to you--the rent money) are both crimes.

3) Check your business insurance; if you have coverage for fraud, theft, and/or employee dishonesty, you may be able to submit a claim for reimbursement.

Good luck.