? on small business fencing operation

litgirl

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I'm trying to straighten out part of a plot line that involves a small business, possibly the power of attorney, and the consequences of illegal actions by the business. Any help would be appreciated, as I'm not even sure I'm asking the right questions.

The situation: the father owns a small business. The son is either a) co-owner, or b) has power of attorney because the father is mentally incapacitated. The son lives in another state and has as little to do with the business as possible; there is a manager and workers and so forth (it's a small store). The workers at the store are busy continuing a fencing operation (with the father was involved in before Alzheimers set in), against the will and/or knowledge of the son. The father dies, leaving the business to the son. Within a short time, the son also dies, and his wife inherits the business.

Question: If, while the son was in charge, the business engaged in theft, would the wife (as owner of the store) inherit any kind of legal responsibility for repaying that theft/dealing with legal consequences of it? She has no idea that any of this was going on.

Also, back to the power of attorney vs. co-owner, if the father is incapacitated and the power of attorney situation goes into effect, is the son then ultimately responsible for any illegal actions performed by this business?

I'm primarily looking for a way to implicate the son, have bad consequences for his family once he dies, and have a single clause/situation which, if it didn't exist, would exonerate the father. Am I asking the right questions? If not, which questions should I ask? And what resources should I be looking at to understand this better?
 

Soccer Mom

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Disclaimer: This is not a legal opinion and the laws of your jurisdiction may vary.

Really, it's not possible for wife or son to be criminally liable for the actions of the business. Civil liability is another issue and they might be subject to a judgment against the business, even though they weren't a party to the action.
 

Horseshoes

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Owning a business that is a fencing operation makes that owner responsible for debt, whether that debt was incurred through clean or dirty business practices. Same goes for the son's wife, when the son kicks. She owns the business, she is responsible. However, I have seen criminal charges against a company owner that did not stick when he denied any knowledge of illegal acts on the part of the underlings. Businesses don't commit crimes, people do. So if there is not enough evidence to stick son or wife with a crime--because they don't even know the crimes are occurring, then they aren't going to jail, though they can surely be inconvenienced by the investigation and its consequences. Civilly, the owner of the business is liable for the business practices, though again, in trial, wifey will deny knowledge and hope for the best.

This clause or situation you want that would exonerate the father doesn't work, given that you describe the father knowing about the crimes. He needs to (like son and daughter-i-l) not know.
 

litgirl

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Thanks, soccer mom and Horseshoes! I'm hoping for an ambiguous situation in which the surviving family can feel threatened, but where they can ultimately get off the hook. (Exonerating the father was a misprint, sorry--I meant the middle generation.) So your answers are very helpful!