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Barrister, Attorney
Category: Business Law
Satisfied Customers: 38223
Experience:  17 years practicing attorney, JD, BA, MBA
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In an LLC, partner responsible falsifies the

Customer Question

In an LLC, partner responsible for financials falsifies the books to secure a loan from bank, is the other partner still responsible for pay-out of loan?
Submitted: 1 year ago.
Category: Business Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question..The "innocent" partner has no criminal liability here, but since he is a partner in the LLC, if it is the LLC that has taken out the loan, he is responsible for repayment up to the amount of his investment in the LLC. But if the loan goes bad, he can still sue his partner for causing any damages to his interest in the LLC if the "guilty" partner engaged in fraud to get the loan in the first place and defaulted on repaying...thanksBarrister