The owner of a business that helps foreign nationals obtain EB-5 visas through US infrastructure investments has been held responsible for $2.5 million in damages by the Delaware Supreme Court. This decision comes after allegations were made that the owner funneled funds to himself and another executive within the company.
Joseph Manheim, the owner in question, argued that he did not owe $442,000 in compensation to Paula Mandle, a director he appointed to a Delaware Valley Regional Center LLC affiliate. However, the Delaware Court of Chancery ruled in June 2022 that Mandle was entitled to the compensation.
The court’s decision holds Manheim accountable for misappropriating company funds and disregarding proper procedures for compensation within the business. This case serves as a reminder of the importance of ethical business practices and financial transparency within organizations. Manheim’s actions have resulted in significant financial consequences for both him and the company he operates.
Manheim claimed that he did not need Mandle’s approval for any decisions he made within the company. However, this assertion was rejected by the court as it undermined proper corporate governance and allowed Manheim to enrich himself at the expense of others.
This case highlights how important it is for businesses to have strong internal controls and proper governance structures in place to ensure financial transparency and prevent fraudulent activities like this one from taking place.
In conclusion, Joseph Manheim’s actions have served as a cautionary tale for business owners who engage in unethical behavior or fail to adhere to proper corporate governance structures. The court’s decision holds him accountable for his misconduct and sends a clear message about the importance of ethical behavior in business operations.
