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LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 36754
Experience:  I am a practicing attorney with more than 3 decades of experience in the legal field.
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A client wanted s money overseen by a POA due to market

Customer Question

A client wanted his money overseen by a POA due to market conditions and signed over a financial power of attorney. From 2006-present all principal plus interest was returned. No note, no agreement, just "make me some money". Now a 3rd party has reviewed my accounting and feels I should have paid more in interest (paid on avg 8% per year). Now want to hire an attorney to collect. Thoughts?
Submitted: 1 year ago.
Category: Legal
Expert:  LawTalk replied 1 year ago.

Good afternoon,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

My thought is that you averaged 8% because you made conservative investments and didn't run a big risk for the person you were assisting. My thought is that they are barking up the wrong tree if they think that they are going to find an attorney that says that you mishandled your obligation as a fiduciary of the person who gave you the POA.

I just don't see this going anywhere. It isn't like you embezzled money from this person.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Kindly, remember to rate my service to you. That is how I am credited for assisting you.

I wish you and yours the best in 2015,

Doug

Customer: replied 1 year ago.

Actually there became a few accounting errors whereas they found some missing transactions. I found that to be true and was not intentional nor did the funds ever come to me. They want to reconstruct and input an interest rate of close to 15% as that is what I was returning at the beginning. As market conditions changed some rates became lower. I offered to return funds after I discovered the computer error but again they want to reconstruct a crazy interest rate scenario. I offered to return the principal plus 8%-above market.

Expert:  LawTalk replied 1 year ago.

Hi,

Well, if your accounting was poorly prepared, then I can see where they might have a beef with you.

I think that your offer is more than fair and absent them being able to prove that you embezzled funds, I don;t see much of a lawsuit here.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Kindly, remember to rate my service to you. That is how I am credited for assisting you.

I wish you and yours the best in 2015,

Doug

Customer: replied 1 year ago.

I guess my real question is since I returned more principal than entrusted regardless of the rate of return, with no note, no promises, valid POA and even though an accounting error, why would I be obligated to return anything as the net result was far better than if he were to lose money in the market? Even with the error, he received 8%+. Thank You!

Expert:  LawTalk replied 1 year ago.

You agreed to use your best efforts to assist this person. If you failed in that respect he or his estate could seek to show that you mismanaged his money and lost income for him. You owed a fiduciary obligation to him to do your best. The return of more than the principal he entrusted you with is not the issue. However, I still do not see that you have a problem.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Kindly, remember to rate my service to you. That is how I am credited for assisting you.

I wish you and yours the best in 2015,

Doug

Expert:  LawTalk replied 1 year ago.

Hi,

I see that you have declined my offer to speak with you by phone. That is fine. Can I further assist you today?

Doug