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What is Misappropriation?

Misappropriation technically means the intentional misuse or illegal use of another person’s property or funds for self-use or any other unauthorized use. In most cases, this term is used when mishandling occurs and the crime is committed by a person with a fiduciary duty. Examples of people who carry a fiduciary duty are public officials, trustees, executors or administrators of a will or estate. Therefore, if people who have been entrusted with a responsibility to protect another person’s asset break this trust by knowingly and willingly committing a fraud and using the funds inappropriately, it is referred to as misappropriation. Misappropriation is considered a felony and is punishable by law. Read below where Experts have answered questions regarding this.

What does misappropriation of likeness mean?

Misappropriation of likeness is usually used in cases when someone uses another person’s name or reputation for financial gain or benefits. An example of misappropriation of likeness would be if a consultant hired by a client uses the client’s name and reference in his/her personal marketing or advertising material without prior consent or approval from the concerned client.

Can a trustee be convicted for executing a will or trust improperly?

If improper treatment includes misappropriation of funds from a family trust or estate, it could be considered as serious as criminal embezzlement. All other deeds or actions of the trustee may not have such serious repercussions other than misappropriation. It would most likely lead to a criminal prosecution and conviction if proven guilty.

Is it misappropriation if a CEO used company funds for a personal asset purchase and returned the money at a later date?

If the company funds were deliberately used for a personal purchase even though the funds were returned, this is a violation of his fiduciary duty to the company and amounts to embezzlement or misappropriation of company funds. The CEO is liable for any losses suffered by the shareholders and the board members can choose to take criminal action against him.

What rights does an adult child have if the parents, who are acting trustees of a trust fund, are denying the child funds?

As trustees of a trust fund or estate, your parents are bound by the duty to adhere to the terms and conditions of the trust. If they refrain from doing so you can file a suit in civil court. You can request the court to terminate their role as trustees for not fulfilling their responsibility and ask for a complete accounting to rule out the possibility of misappropriation of funds. In case misappropriation is discovered, you can also sue for actual and punitive damages. Additionally, the court can be requested to have the trust dissolved and the amount allocated to you.

How should an employer handle an employee who has misappropriated funds while submitting travel expenses?

Employees who go against company policy by submitting deceitful travel expenses can seem like they are trying to indulge in misappropriation of funds. First, schedule an interview with human resources to make them aware of the evidence you have. Then, question them on the authenticity of the expenses and request an explanation for it. If the explanation or reasoning is dissatisfactory, the concerned authority can decide to ask the employees to reimburse the extra amount claimed, suspend the services of the employees or terminate them. 

When a person with a fiduciary duty to take care of one’s assets violates the faith and trust put upon them by indulging in misappropriation, it can be very difficult and stressful to deal with. You will need to analyze the depth of the damages and seek a remedy either through a mutual agreement or litigation as it is an offense punishable by law. If you wish to know more about this, as well as your rights and options either as a victim or an offender, consulting an Expert will prove useful.

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