What to do about embezzlement by a fiduciary?

UPDATED: Jun 17, 2012

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What to do about embezzlement by a fiduciary?

A fiduciary(the deceased’s brother) embezzled over $400,000 out of the child heir’s account and collecting business money from customers but not depositing it into the account. Further, he did not report all inventory. A new PR was appointed upon my request and finally closed the account. What will the penalty be?

Asked on June 17, 2012 under Estate Planning, Ohio


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

There are two scenarios here that may give rise to punishment: criminal and civil. On the civil side remedies for breach of fiduciary duty are recovery of actual damages, equitable relief (constructive trusts, fee forfeiture, ordered accounting, appointment of receivership, profit disgorgement), interest in the form of pre- and post-judgment and court costs. SOme states allow for recovery of "mental anguish."  Seek legal help.  Good luck.

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