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Corporate Fraud

Most corporate fraud cases involve an investor or partner who was duped by company or corporate insiders. It’s the age old saw: If you are at the negotiating table and you look around and can’t identify the sucker, it’s probably you!

Like most legal issues, an ounce of prevention is worth a pound of cure. If you are about to invest money in something, take the time to negotiate a clear agreement of your rights and responsibilities up front. Check the track record, reputation and financial references of the people with whom you are investing.

But what happens if you end up as the victim of business fraud? The first rule is to be diligent. Keep tabs on the company and the way they spend their money. Ask for regular meetings and financial information. Talk to vendors, suppliers and customers of the company.

If you have invested in a company and do not have access to the financial books and records of that company you are at a distinct disadvantage. The Texas Business Organizations Code gives shareholders the right to inspect corporate books and records. It even requires the business entity to pay attorney’s fees for the requesting party if they are forced to file suit to gain access to the financial records.

Specifically Section 21.218(b) of the Texas Business Organizations Code states that shareholders are entitled to examine and copy “the corporation’s relevant books, records of account, minutes and share transfer records.”

This right of inspection is open to any shareholder who a) makes a written demand; b) states a proper purpose; and c) has held shares for at least 6 months preceding the demand or holds at least 5 percent of the corporation. A common purpose would include determining the financial condition of the company; determining share value; investigating company management or communicating with other shareholders.

Contact Hoch Law Firm for help with corporate fraud cases in Dallas-Fort Worth.

Client Reviews
Tim represented us in a dispute with our insurance company over roof damage due to a hail storm in the Dallas area. We were very disheartened by the constant denials and dishonest treatment we were receiving from the insurance carrier, and Tim counseled us to remain patient while he systematically put together expert opinions and facts that supported our claim. Eventually we were able to settle our case and had the roof replaced on our apartment building just two months before the big tornado hit in late 2015. Our investment property was the only one in the area that did not sustain any roof damage! We were lucky with our timing, but we were even more fortunate to have Tim on our side. We highly recommend Tim's firm! Allan and Marian Goodman
In short order, he was able to quickly understand and master the details of our case and map out a very cost-effective, efficient legal strategy. After a series of quick wins in court, our opponent came to the table with a highly satisfactory settlement. Mr. Hoch’s ability to effectively tell a persuasive story within the confines of a courtroom is without equal. Anthony Page
Tim’s knowledge and insight regarding not just the law, but business and human nature in general was greatly appreciated and relied upon as we navigated through a difficult situation. Tim has my utmost admiration and respect both on a personal and professional basis. Phillip A. Reinsch
We use Tim Hoch to handle complex business litigation matters on a variety of topics. He combines a strategic, no-frills approach with a bottom-line mindset. He is extremely responsive, organized and thorough. We would gladly recommend his services. Richard Warren, CEO