Intentional conversion of funds by a person that was placed in a trusted position relative to protecting those funds
The misappropriation of funds belonging to another and for which the defendant had a fiduciary responsibility to hold and secure over funds for the benefit of another.
Examples of fiduciaries include:
- trustee
- attorney
- guardian
- estate administrator of personal representative
The breach of the fiduciary is his intentional conversion of assets for his own benefit rather than protecting and growing these assets.
Perhaps one of the worst offenders of misappropriating client funds is the recently deceased Bernard Madoff, who made off with billions of dollars from his clients.
Madoff was a financial advisor and broker of funds for the benefit of his clients and owed a fiduciary duty to advance his client’s interests before his own and to protect, preserve and grow the funds he was entrusted to manage.
