Racquel and Danielle were shareholders in Odogwu Casino, Inc., which operated a casino in West Baltimore.
Racquel owned 51 percent of the stock and Danielle owned 49 percent. Danielle managed the casino, which
Racquel typically visited once a week. At the end of 2013, an accounting audit showed that the cash on hand was
less than the amount posted in the casino’s books. Later, more shortfalls were discovered. In December 2014,
Racquel, and her team of accountants, did a complete audit. Danielle was unable to account for $1,650,230 in
missing cash. Racquel then kept all of the casino’s most recent profits, including Danielle’s $980,909 share.
And, without telling Danielle, Racquel sold the casino for $5,400,000 and kept all of the proceeds. Discuss.
- The presentation of your paper shall adhere to the following structure:
- Issue – Identify the issue(s) (Each issue must have its own IRAC)
- Rule – Identify and explain/define the applicable rule(s), term(s), or concept(s)
- Analysis – Apply the applicable rule, term, or concept to the facts. And, present arguments for both sides.
- Conclusion – Pick one side and give a conclusion