There is a certain level of trust that exists between an employer and employee based on the assumption that all parties will work in the company’s best interest. However, sometimes certain parties put their own interests first, even going to the extent of committing fraud against their company. The Illinois business fraud lawsuit of Catmet Company, Inc. v. Michael Melnick, 4M Trading, LLC, et al., 05 L 9164, involves three separate counts of fraud committed by a former employee.
The business fraud cases were brought by Catmet Company, Inc., a company involved in processing catalytic converters. Catmet’s business model involves purchasing catalytic converters from scrap yards and other supplies. Catmet then removes valuable metals from the used catalytic converters, e.g. platinum, palladium, and rhodium, which it then sells to other end-users.
Catmet alleged that between 2003 and 2005 one of its former employees, Michael Melnick, had worked in conjunction with other outside parties to defraud Catmet. Catmet’s lawsuit involved not one, but three different schemes in which Melnick had swindled its employer out of business profits. And while the jury considered each of the schemes separately, it returned verdicts in favor of Catmet on all three counts.
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