Upholding the bankruptcy court and the Bankruptcy Appellate Panel, the Tenth Circuit explained when a corporate officer can be saddled with a nondischargeable debt for causing a corporation to defraud a customer.
The debtor provided aircraft sales consultancy services through a corporation of which he was the owner and manager. On behalf of the corporation, he signed a contract for the corporation to represent a family in purchasing an aircraft.
The debtor identified an aircraft that the purchasers decided to buy. The debtor misrepresented the purchase price, telling his clients that the price was higher than he would be paying. The buyers ended up paying $250,000 more for the aircraft than the debtor paid the seller. The debtor kept none of the $250,000 for himself. Instead, it went to his lawyer and other third parties.
Later, the debtor sued the buyers about the management of the aircraft. In the course of the litigation, the buyers discovered that they had been defrauded in the purchase. So, they counterclaimed.
Considering bankruptcy? Call our office at 816-524-4949 or click here to schedule a consultation to discuss your options.