Facts

Plaintiff Frontline Capital Inc. filed suit against its former employee Matt Wiltsey, and companies owned by owned by Wiltsey including Merchant Processing Solutions LLC, The Financial Systems Co. LLC, EMS Corp., and Global Asset LLC.

PLAINTIFF'S CONTENTIONS: Frontline Capital alleged that Wiltsey has siphoned off nearly $10 million in corporate funds for himself, without pro rata distribution to Frontline Capital. Plaintiff also claimed Wiltsey diverted the funds through a series of companies he wholly owned, and eventually those funds landed in trusts he established to hold his home and for the benefit of his son.

DEFENDANTS' CONTENTIONS: Defendants denied the allegations.

Result

The court found in favor of the plaintiff and awarded $2.37 million in both compensatory and punitive damages.

Other Information

The court found that Wiltsey’s testimony was not credible and that the accounting records around which the defendants built its defense had been modified and was not reliable. The court also found that Wiltsey had backdated documents in order to make the transactions appear legitimate.