Co-Agent Jointly Liable for Theft from Principal

As a co-agent with her husband, a wife had a duty to the principal to act on her knowledge of her husband’s actions to protect the principal from theft and fraud by the husband as co-agent, and is therefore jointly and severally liable for the funds taken improperly from the principal’s accounts.  The court also retroactively imposed a constructive trust upon the residence of the husband and wife, which was improved using the appropriated funds and transferred from the husband to the wife as part of a sham divorce.  In Re: Peter S. Whitby, Principal, 8 Fid.Rep.3d 92 (Montgomery Co. O.C. 2018).

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