Casino markers opened on company checking account

I'm looking for someone that may have knowledge with this. Long story short I just got a call from my bank that there were 3 casino markers trying to charge a company checking account. The person who did this is a partner of the business with a small ownership of 5% with markers totaling $100,000 which his 5% cannot cover. Is this person liable for the debts or will the company be liable. This account was opened with no blank check. Just the numbers for the bank account was given to the casino along with his ID and they approved these markers

Edit: in the partnership agreement it says no partner shall take funds from the company for personal use unless a written authorization from all partners is granted.

I'm hoping that will cover me from paying these. I told the bank to decline them and have opened a new checking account for the business as I'm afraid more markers will be coming in.

If he is an authorized signer on the account, the company is liable for the checks cashed. Liability of him to the company is most likely a civil matter and depending on circumstances could be criminal. Time to lawyer up.

I spoke with MGM and was told markers can only be taken out on a company account if it a sole proprietorship. Either MGM neither asked or he lied.

Quote: Amosjdg83

I spoke with MGM and was told markers can only be taken out on a company account if it a sole proprietorship. Either MGM neither asked or he lied.

Is that MGM policy or Nevada law?

Quote: Amosjdg83

I'm looking for someone that may have knowledge with this. Long story short I just got a call from my bank that there were 3 casino markers trying to charge a company checking account. The person who did this is a partner of the business with a small ownership of 5% with markers totaling $100,000 which his 5% cannot cover. Is this person liable for the debts or will the company be liable. This account was opened with no blank check. Just the numbers for the bank account was given to the casino along with his ID and they approved these markers

Edit: in the partnership agreement it says no partner shall take funds from the company for personal use unless a written authorization from all partners is granted.

I'm hoping that will cover me from paying these. I told the bank to decline them and have opened a new checking account for the business as I'm afraid more markers will be coming in.

IANALBIALOOTI*, but my guess is, the company is liable to the casino, and you would have to take the partner to court (claiming that he violated the partnership agreement) to get the money back - keeping in mind that if he defaults on markers, chances are he lost the money and doesn't have any to cover it. The only other reasons I can think of for taking out the markers in the first place are (a) to steal the money from the company without doing it directly, or (b) so he can "flash it around" while he's there but not actually bet much of it, and then pay them off when he leaves.

*I Am Not A Lawyer But I Act Like One On The Internet

You definitely need legal advice from a corporation attorney as to how much protection you have, but my non-expert opinion is that you can't be held liable, though they may try. Agree it's embezzlement even though unsuccessful, and kudos to your bank for not paying them without asking about the validity of the transaction; much harder to fight once the money's been debited from the account.

I think the company is going to have to pay. The partnership agreement is not the casino's concern, they will sue the company and your partner and then the company if it has to pay the casino will have to sue the partner. I know this happen in London and not the USA, but Chef Ramsay was held liable for the actions that his father-in-law did as his partner. I agree, get an attorney and hope your attorney that drew up the partnership did a good job.

I wish I could tell you that you won't be liable.

Before I sold my plumbing company I had a line of credit with CET (Harrah's at the time). They checked my bank account thoroughly. My wife and I were the only two signers. We both qualified to use that LOC.

I can't believe they didn't investigate this more thoroughly. They seem to have dropped the ball but I'd be surprised if they don't sue you. 100K isn't an insignificant amount. Even for a casino.

Good luck! Please keep us posted when this is settled.

Quote: Amosjdg83

I'm looking for someone that may have knowledge with this. Long story short I just got a call from my bank that there were 3 casino markers trying to charge a company checking account. The person who did this is a partner of the business with a small ownership of 5% with markers totaling $100,000 which his 5% cannot cover. Is this person liable for the debts or will the company be liable. This account was opened with no blank check. Just the numbers for the bank account was given to the casino along with his ID and they approved these markers

Edit: in the partnership agreement it says no partner shall take funds from the company for personal use unless a written authorization from all partners is granted.

I'm hoping that will cover me from paying these. I told the bank to decline them and have opened a new checking account for the business as I'm afraid more markers will be coming in.

You don't happen to own a small Hazmat clean up company do you?

If so you want to search the name Baccaratform79.

Quote: AxelWolf

You don't happen to own a small Hazmat clean up company do you?

If so you want to search the name Baccaratform79.

Axel don't be stupid (not an insult), it is a large hazmat company.

Quote: Amosjdg83

I'm looking for someone that may have knowledge with this. Long story short I just got a call from my bank that there were 3 casino markers trying to charge a company checking account. The person who did this is a partner of the business with a small ownership of 5% with markers totaling $100,000 which his 5% cannot cover. Is this person liable for the debts or will the company be liable. This account was opened with no blank check. Just the numbers for the bank account was given to the casino along with his ID and they approved these markers

Edit: in the partnership agreement it says no partner shall take funds from the company for personal use unless a written authorization from all partners is granted.

I'm hoping that will cover me from paying these. I told the bank to decline them and have opened a new checking account for the business as I'm afraid more markers will be coming in.

I am not a lawyer but I am almost certain that your company is not responsible for the debt.
Just as you did, let the bank decline the check. Then the casino will go after him for the money, not your company.

Quote: pokerface

I am not a lawyer but I am almost certain that your company is not responsible for the debt.
Just as you did, let the bank decline the check. Then the casino will go after him for the money, not your company.

unless it was done in the company name. Since he is an owner it is always possible that he did everything in the business name. I am not sure if a casino would do that. If it was just in his name then it is all on him. It doesn't matter if it was drawn on a business account. They will go after the signer. It would be like me doing this on a joint account with my wife and them arresting her for it.

IANALIJPOOTI