Should the Company Directors face charges of embezzlement ?
2006-12-22 12:33:06 · 8 answers · asked by LongJohns 7 in News & Events ➔ Other - News & Events
The owner should be made to sell his 3 fecking mansions and refund everyone's money!
That makes me mad to think of people being ripped off like that when all they were trying to do was save up and give their families a decent Christmas!
2006-12-24 06:18:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Farepak was just one company in a very large conglomerate of companies. Another hamper company went into liquidation months before this and the government brought in new legislation to prevent the same thing occurring to other companies.Unfortunately this made the hamper system more expensive to run and with the mother company being overstretched financially Farepak had to apply to the banks for a loan which was then turned down causing farepak to collapse as the money they had been getting had been used to temporarily prop up other companies in the group that were overstretched financially.Weather the directors should face charges of embezzlement is open to debate due to them not actually taking money out of the company they are defiantly guilty of mismanagement of funds however and should be held responsible for that
2006-12-22 21:37:16 · answer #2 · answered by CHRIS P 3 · 1⤊ 0⤋
It was not "Legally" embezzled. The way these companies operate is simple. They set up a limited liability company. This means if they go bust, no one is held responsible. Then they start trading. And as time goes by the directors increase their wages to a point that its not really sustainable. But because the business has a reputation at the bank, The bank provides any shortfall in capital by way of loans and overdraft. And at this point although the company is being bled to death, no one knows the details.
Its only when the bank realises that the promised mega profits do not turn up that they stop the overdrafts and loans. It is then that the goods stop being supplied. Its legalised stealing. Happens everyday. Enron was a good case.
2006-12-22 22:59:59 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Not sure what happened to everyone's money invested with Farepak - could have been lost on the stock market.
Rule one - NEVER INVEST IN A SAVINGS CLUB.
Rule two - INVEST IN A SAVINGS AND LOAN (USA)
BUILDING SOCIETY (UK)
On the stock market only ever invest what you can afford to lose, because what goes up can also come down with a crash.
2006-12-23 07:30:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Noone seems to know exactly where it went. however the owner still has three mansions I think and ran off to warmer climes.
2006-12-22 21:11:16 · answer #5 · answered by Gordon B 7 · 0⤊ 0⤋
The jury is still out on this one.
2006-12-26 12:37:24 · answer #6 · answered by James Mack 6 · 0⤊ 0⤋
Nicked. Every penny of it....allegedly.
2006-12-24 07:09:38 · answer #7 · answered by Anonymous · 0⤊ 0⤋
i don't know
2006-12-22 20:34:56 · answer #8 · answered by US 2 · 0⤊ 1⤋