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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I am the sole officer of an S-corp in Indiana.....I recently

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I am the sole officer of an S-corp in Indiana.....I recently discovered for the 2nd time in 3 years that my wife, who is an employee has been funneling funds out of the business for her own expenses/use........extra payroll for herself as well as misc checks to others and herself. Is this legal???? Could she be prosecuted if I chose too?????? She has filed for divorece and I am afraid this could get ugly!
Thank you for the post, I am happy to assist you by answering your questions. No, what you describe is embezzlement, a form of theft for which she could held liable. But because it is a one person S-Corp, she was essentially stealing from you but as you two are married, the business revenue is a jointly held asset. If there were a third party shareholder, that person could sue her, but has her husband you cannot.
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Customer: replied 4 years ago.

So I am just "screwed"???????? No Legal action against her at all??? What about civil judgements??

Are there other shareholders that could bring the suit?
Customer: replied 4 years ago.

No.........So I guess I am as they say....."screwd" civil penalties or criminal activity?

unfortunately not.