They Stole From You: What to Do When a Fiduciary in New York Crosses the Line

You trusted them. Maybe it was a CFO, managing partner, or long-time executive. They had control over the books, the bank accounts, or key assets. And then the numbers stopped adding up. Money moved without approval. Personal purchases showed up in company records. Now, you’re staring down a nightmare—one where trust turned into theft. In New York, fiduciary misconduct can devastate a business. But you don’t have to just take the hit. With our skilled commercial litigation attorneys in your corner, you can fight back—and you can win.

At Horn Wright, LLP, we represent New York business owners, shareholders, and partners who’ve been blindsided by internal fraud and asset abuse. From financial misappropriation to outright embezzlement, we know how to stop the damage, recover stolen assets, and hold bad actors accountable under state law.

Red Flags You Can’t Ignore: Spotting Asset Misuse in NY Companies

The earlier you catch a fiduciary crossing the line, the better your chances of stopping major losses. Here are two signs that demand a second look.

Disguised Transfers and Unauthorized Withdrawals

Money doesn’t just vanish. But it can be moved in ways that look legitimate—unless you’re paying attention.

Watch for:

• Wire transfers labeled as “vendor payments” with no matching invoice
• ATM or debit card withdrawals outside normal business hours
• Transfers between accounts not listed in company ledgers

In New York, this kind of activity often forms the backbone of a breach-of-fiduciary-duty case under New York Business Corporation Law § 720, which allows businesses to pursue officers and directors for wrongdoing.

Lifestyle Changes That Should Raise Eyebrows

Sometimes, the paper trail starts with personal choices:

• A new car that wasn’t in the budget
• Extravagant travel billed as “business development”
• Private school tuition payments hidden in vendor line items

If someone on your leadership team is living beyond what the company can justify, it’s time to dig into the records.

How to Legally Go After a Fiduciary Who Abused Their Power in New York

Catching them is one thing—taking legal action is another. Here’s how New York law gives you the power to strike back.

Filing a Breach of Fiduciary Duty Claim in NY

Under New York common law, fiduciaries owe a duty of loyalty, care, and honesty. If they put personal gain ahead of the company or its owners, they’ve crossed a legal line.

To build your case, you’ll need to show:

• The fiduciary had a position of trust (officer, director, partner)
• They acted in self-interest or outside their authority
• The company or its members suffered financial harm

You may be able to recover actual losses, profit disgorgement, and even punitive damages if the misconduct was intentional.

Emergency Relief: Freezing Accounts Before They Disappear

If money is still moving—or you think it might—you can request injunctive relief from a New York court. Under CPLR § 6301, courts can issue temporary restraining orders to:

• Freeze business or personal bank accounts
• Block the sale of misappropriated assets
• Prevent ongoing fraud or concealment

These actions are time-sensitive. If you suspect theft, getting an attorney involved right away is key.

What Evidence Wins a Misappropriation Case in NY Business Court

The strength of your claim often comes down to what you can prove—not just what you suspect. Here’s what matters most.

Internal Emails, Transaction Logs, and Approvals

You’ll want to collect:

• Email threads where the fiduciary justified or concealed transfers
• Transaction logs showing unexplained or unapproved activity
• Board minutes or internal approvals that were bypassed or forged

These records help paint a picture of misconduct—and show the court this wasn’t just sloppy bookkeeping.

Expert Witnesses and Forensic Audits

If the situation is complex, courts often rely on outside professionals. Your legal team may bring in:

• Forensic accountants to trace missing funds
• Valuation experts to show the impact of asset loss
• Industry experts to explain what’s “normal” in your field

These witnesses help connect the dots and give your case the credibility judges expect.

Real New York Cases Where Fiduciaries Got Burned

These aren’t just hypotheticals. Courts in New York have handed down serious consequences in fiduciary theft cases.

A CFO Caught Transferring Company Funds

In a Long Island case, a CFO moved over $500,000 from a company’s account to cover personal credit card debt. The court found the transfers intentional and awarded:

• Full repayment of stolen funds
• Double damages under NY’s fraud statute
• A permanent injunction barring him from future fiduciary roles

The company used a mix of bank statements, internal approvals, and text messages to prove its case.

Court-Ordered Restitution in a NYC Partnership Dispute

Two partners in a Manhattan design firm ended up in court when one was caught using business accounts to finance luxury vacations. The judge ruled the spending unauthorized and applied New York Partnership Law § 43, forcing restitution and removing the offending partner.

It took a forensic audit, but the truth came out—and the remaining partner was able to stabilize and continue the business.

Don’t Let Them Get Away With It

Fiduciary theft hits hard. It’s not just about the money—it’s about betrayal. At Horn Wright, LLP, our commercial litigation attorneys help New York businesses and stakeholders confront internal fraud head-on. We freeze accounts, build airtight cases, and make sure dishonest actors are held accountable. If you’re ready to reclaim what was taken, it’s time to hire one of the best law firms in America. Call us today—because the longer they run the show, the more damage they’ll do.