Is there such thing as theft by deception and can you file a lawsuit for it?
Full Question:
Answer:
A theft by deception charge requires proof of criminal intent. Please see the SD statute below. The rights you have to compensation will likely be governed by contract law principles. The rights and roles of a member in a LLC are defined in the operating agreement and bylaws. A buy-sell agreement is often used to provide the terms upon which the parties agree to the terms and conditions of a future sale of the member's interest. I suggest you read the terms of these documents carefully to deterimne your rights and obligations, or contact a local attorney who can review all the facts and documents involved.
A person who has been unjustly enriched at the expense of another may be required to make restitution to the other. Despite not having a contractual agreement, a trial court may require an individual to make restitution for unjust enrichment if he has received a benefit which would be unconscionable to retain. A person may be deemed to be unjustly enriched if he (or she) has received a benefit, and keeping it would create injustice.
The following is a SD statute:
22-30A-3.
Any person who obtains property of another by deception is guilty of
theft. A person deceives if, with intent to defraud, that person:
(1) Creates or reinforces a false impression, including false impressions
as to law, value, intention, or other state of mind. However, as to a
person's intention to perform a promise, deception may not be inferred
from the fact alone that that person did not subsequently perform the
promise;
(2) Prevents another from acquiring information which would affect the
other person's judgment of a transaction;
(3) Fails to correct a false impression which the deceiver previously
created or reinforced, or which the deceiver knows to be influencing
another to whom the deceiver stands in a fiduciary or confidential
relationship; or
(4) Fails to disclose a known lien, adverse claim, or other legal
impediment to the enjoyment of property which the deceiver transfers or
encumbers in consideration for property the deceiver obtains, whether such
impediment is or is not valid, or is or is not a matter of official record.
The term, deceive, does not, however, include falsity as to matters
having no pecuniary significance or puffing by statements unlikely to
deceive reasonable persons.