Facts

In October 2004, members of the Lin Wah Music Group and Haung Mim Opera Group approached defendant Cheong Y. Yee about taking over as president of the two organizations in the hope of improving their membership rolls, finances and operational structure. After a series of meetings, the two organizations agreed to merge their organizations effective Jan. 1, 2005. The defendant, a previous outsider to both organizations, was elected president of the Asian Culture and Senior Center (ACSC), the new entity.

From Jan. 1, 2005, through October 2006, the ACSC applied for and received non-profit status, implemented improved accounting procedures, increased revenue and broadened its community outreach program.

In October 2006, the president transferred all of the new organization's money into a new account that the chief financial officer did not have signatory authority over.
As a result of the transfer of funds, several former members of the Lin Wah Music Group left the ACSC, and formed a new entity called the Lin Wah Music Center.

Eighteen months later, in April 2008, the Lin Wah Music Center sued the defendant for fraud and conversion.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that it was always the defendant's intent to steal the combined organization's funds and that the removal of the CFO's access to the ACSC funds was proof of the same. The plaintiff further claimed that the defendant used the allegedly stolen ACSC funds for his personal benefit.

DEFENDANT'S CONTENTIONS:
The defendant contended he did not steal any funds and that the plaintiff's claims were those of disgruntled former members of the Lin Wah Music Group who did not like an "outsider" looking into and questioning the new association's cash controls. The defendant became increasingly concerned with the chief financial officer's ability to perform his job duties. The two men were frequently at odds with each other over operational issues, including the use of cash journals and accounting ledgers. Fearful the organization's treasury was at stake, defendant transferred the funds to the new account.

Settlement Discussions

The plaintiff refused to mediate the dispute or enter into any settlement discussions. The defendant made at least two attempts prior to trial to settle the matter and as well as one attempt after the jury was impaneled.

Result

Defense verdict on all causes of action.

Other Information

FILING DATE: April 1, 2008.

Deliberation

three hours

Poll

12-0 (intentional misrepresentation, false promise, negligent misrepresentation, conversion)

Length

three days