Gray•Duffy, LLP Obtains Favorable Outcome in Million Dollar Fraud Claim Asserted Against Client

March 2014

Overview

Michelle MacDonald of Gray•Duffy’s Encino office obtained a favorable resolution of a million dollar fraud claim asserted against the firm’s client. The claim involved investments of approximately $1.2 million.

Discussion

After a plaintiff provided funds as part of an alleged investment, it was determined that the plaintiff’s primary contact failed to make the investments in real estate and stock as promised and simply deposited the funds in his own bank account. Upon discovery of the misuse of the investment funds, that defendant fled California and eventually was arrested on other charges in another state. The money that he absconded with was never recovered. Gray•Duffy’s client was a business associate of the defendant who fled and had met the plaintiff three times in a casual social context. In the lawsuit, the plaintiff asserted that the firm’s client was actually part of a broader scheme to target her, investigate her wealth and then convince her that the investments were real and that the first defendant was a trustworthy individual. The matter was ultimately mediated and a settlement was reached which was less than one percent of the funds sought in the plaintiff’s verified complaint.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.