Article Archives >> Lead Stories >> October 1-15, 2009
Preview of Article:
Nonprofit May Sue CEO
Of Failed Credit Card Company
Court says president may be personally liable
for commingling corporate funds and payments
A federal District Court in Washington state has ruled that a nonprofit soccer club may sue the founder and CEO of a bankrupt credit card processing company that utilized more than $210,000 in payments made to the club in an unsuccessful effort to keep the company afloat. (Montclair United Soccer Club v. Count Me In Corp., W.D. WA, No. C08-1642-JCC, 9/14/09.)
The claim arose when Count Me In, which described itself as “the trusted online sports registration software” for “hundreds of millions in payments,” ran into financial trouble in 2008. Instead of depositing payments in the club’s account every two weeks as required under the agreement with the club, the company withheld the money and used it to pay its bills and upgrade the software.
Article Archives >> Lead Stories >> October 1-15, 2009
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