Stone Mountain, GA asked in Real Estate Law and Business Law for Georgia

Q: The manager of our company used tenant's deposit to pay loan, then return back to account. Is that serious legal issue?

The manager of our company used our company's money to buy houses, use his private name for contract and HUD, than contribute these houses to the company in the same day. Looks very uncomfortable. Is that break the law?

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1 Lawyer Answer
Seth Meyerson
Seth Meyerson
Answered
  • Winder, GA
  • Licensed in Georgia

A: It depends. An attorney would have look at the details here. At first blush, I though that the transaction you were describing was criminal. After reading that the manager contributed the houses back to the company, the transaction seems less sinister. As far as hud goes, that is another question. Not enough detail here to understand if he is improperly skirting a government requirement.

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