A legal expert witness advises on a case involving an attorney who failed to disclose his interest in property to the client investing in it. The plaintiff owned an internet company in Vermont that was generating a great deal of revenue. The defendant is an attorney and real estate developer who is related by marriage to the plaintiff. The defendant discussed depreciation of real property and assets with the plaintiff and told him he could keep nearly all of his projected revenue with little or no associated tax liability. Among numerous transactions complained of by the plaintiff are deals in which the defendant sold nearly all of his interest in two developments to the plaintiff for millions of dollars, even though the defendant had valued the assets significantly lower on his tax forms. The defendant did not disclose to plaintiff his ownership interest in the two projects. Further, the transactions did not include the real property that the developments were built on, and those properties were already encumbered as security for loans. The defendant also took over accounting and tax services for plaintiff’s businesses. Under the defendant’s leadership, the businesses fell apart, and the plaintiff faced a considerable tax liability.
The plaintiff alleges more than $10 million in losses. He asserts claims for securities violations, breach of contract, breach of the covenant of good faith and fair dealing, fraud, breach of fiduciary duty, and conversion.