Opinion ID: 1247936
Heading Depth: 1
Heading Rank: 3

Heading: Diversion of Assets from the Corporation to the Detriment of Creditors

Text: With respect to the diversion of assets, the trial judge found: Robert B. Yost had no income producing business other than Yost Brothers Company. He never withdrew more than $130 per week in salary from the corporation. In 1973, Robert and Shirley Yost's combined income was $12,043.87, yet Robert Yost made deposits into his personal account totaling $16,147.45.    In 1974 Robert and Shirley Yost's combined income was $12,468.80, yet Robert Yost made deposits into his personal account of $30,062.58, of which $18,780 was in cash.    In 1977, Robert and Shirley Yost's combined income was $10,368.80, yet Robert Yost deposited $23,930 into his personal checking account.             It would appear to the Court that there is a great likelihood in view of the testimony of various witnesses as to transactions in the stock market, in coins and in behalf of third persons without substantiating records that there was an unauthorized diversion of corporate funds or assets to other than corporate uses. The court found detriment to creditors where the judge said: In 1964 the defendant had fallen behind in payments for gasoline products and was indebted to the plaintiff in the amount of $41,175. Further, the defendant, Yost Brothers Company, had failed to make payments under a purchase agreement for the business real estate.