Fiduciary misconduct is a serious matter. If you have been harmed by someone in a fiduciary role, you need the counsel of a powerful fiduciary misconduct attorney. In Virginia or Maryland, Randall J. Borden, Attorney at Law is the person to call. He has extensive experience and a long history of successfully representing clients in both states. Contact him to discuss your issues in confidence.
What is a Fiduciary?
A fiduciary is someone who manages money or property for someone else. Anyone who accepts the role of a fiduciary is held legally responsible for acting only for the benefit of the other party, not for their profit.
Many people are in fiduciary roles as part of their profession, such as lawyers, accountants, financial advisors, and stockbrokers. Many others assume fiduciary roles when they take over financial matters for a friend or relative, e.g. a parent for their child or a child for their aging parent. The fiduciary relationship is defined by trust. Therefore, a breach of fiduciary duty may not always qualify as a crime but is always a serious betrayal.
Recognizing that when one party is given authority to manage the finances of another there is a heightened risk of misconduct, the law defines such relationships as fiduciary and has statutes to protect those who may be victimized. Nonetheless, breaches of fiduciary duty occur far too often. If you suspect or are sure that you have been victimized by fiduciary misconduct, now is the time to contact Randall Borden.
Examples of Fiduciaries Include:
- Accountants
- Business partners
- Corporate directors (to shareholders)
- Doctors
- Employees
- Executors
- Guardians
- Lawyers
- Stockbrokers
- Trustees
Anyone acting as a fiduciary who is found to be seeking personal gain rather than protecting the interests of the person they are entrusted to protect is guilty of fiduciary misconduct.
Types of Fiduciary Misconduct
Anyone who listens to or reads the news knows that fiduciary misconduct is by no means rare. The following is a list of illustrative examples of fiduciary misconduct:
- Trustee who dips into trust funds for purchases of personal clothing and jewelry
- A stockbroker who invests a client’s money in a company that provides kickbacks
- Financial advisor who promotes a high-risk investment to obtain a commission
- Board of directors that intentionally neglects to pay shareholders dividends
- School superintendent who uses district funds to finance a cruise
- A partner who uses company funds to invest in valuable artwork
- Lawyer who uses escrow account funds for personal expenses
- An employee who sells trade secrets to a competing business
- Doctor who performs an unnecessary medical procedure
- A partner who fails to disclose a conflict of interest
If you have been a victim of fiduciary misconduct, Randall Borden is well-positioned to listen carefully to the details of your case and thoroughly investigate. He will gather all financial and other pertinent records and create a powerful legal strategy for trial. Working with him will give you the best chance of obtaining a just outcome, including compensatory damages. More than that, his fight for your rights will help to heal emotionally.
Duties Breached by Fiduciary Misconduct
When someone in a fiduciary role works against their beneficiary’s best interests, they are breaching the following fiduciary duties:
- Duty of care since they have committed to becoming knowledgeable about all relevant financial matters, considering options to discover which will best serve their beneficiary’s interests, and making reasoned decisions on their beneficiary’s behalf.
- Duty of loyalty since their role defines them as owing a duty of loyalty to their beneficiary and they should have bowed out when it became clear that there was a conflict between their own best interests and those of their beneficiary.
- Duty of good faith which means they should have behaved honestly and transparently. Breaking or circumventing the law while managing another’s money or property is a severe breach of fiduciary duty.
- Duty of confidentiality since part of being a fiduciary requires keeping your beneficiary’s private information confidential. Any act that divulges a beneficiary’s personal data, whether verbally or in writing, puts the beneficiary at risk of harm.
- Duty of prudence since a fiduciary is expected to be both cautious and judicious when making decisions concerning the beneficiary’s assets.
- Duty to disclose if they fail to reveal pertinent details of financial transactions, such as investments, costs, fees, and transfers of funds. In fact, a fiduciary’s failure to report financial transactions or not to be fully transparent when doing so may result in subsequent investigation.
Penalties for Fiduciary Misconduct
Penalties for fiduciary misconduct vary according to the nature and severity of the breach. While criminal breaches may result in incarceration, punishment for civil cases can result in:
- Monetary penalties and compensatory damages
- Suspension or removal from fiduciary roles
- Loss of professional license or disbarment
- Defendant’s responsibility for all attorneys’ fees and court costs
If the court rules that the fiduciary misconduct was oppressive, fraudulent, or malicious, the plaintiff may also be awarded punitive damages.
Contact Our Experienced Fairfax Fiduciary Misconduct Attorney Today
Being cheated and taken advantage of by someone you trust can be not only financially devastating but also emotionally traumatic. In such a situation, it helps immeasurably to have a capable, empathic legal advocate. Get in touch with Randall Borden now. The strong professional support you receive will wipe out any vestiges of humiliation and provide you with a new sense of empowerment.