New York Appellate Court Finds Bookkeeper Employee Liable for Aiding and Abetting Fraud and Breach of Fiduciary Duty

BVLaw
Court Case Digests
August 28, 2024
5962 Automatic Merchandising Machine Operator
445132 Vending Machine Operators
economic damages & lost profits
damages, breach of fiduciary duty, forensic accounting, liability, fiduciary duty, aiding and abetting

Schiano v. Harsanyi
2024 N.Y. App. Div. LEXIS 4477; 2024 NY Slip Op 04338; 230 A.D.3d 820
US
State Court
New York
Supreme Court
Betsy Barros, Joseph J. Maltese, Paul Wooten, Laurence L. Love

Summary

This case was important for two reasons. First, it was a bellwether deciding that an employee bookkeeper can be liable for assisting in fraudulent schemes representatives of the company perpetrate and can be found to have breached a fiduciary duty to the company. Secondly, forensic accountants, in determining damages, should now be alerted and alert attorneys to this possible liability of an employee bookkeeper.

See Also

Schiano v. Harsanyi

This case was important for two reasons. First, it was a bellwether deciding that an employee bookkeeper can be liable for assisting in fraudulent schemes representatives of the company perpetrate and can be found to have breached a fiduciary duty to the company. Secondly, forensic accountants, in determining damages, should now be alerted and alert attorneys to this possible liability of an employee bookkeeper.

This article also appears in:
Business Valuation UpdateVol. 30 No. 12