Self-Dealing
Also found in: Wikipedia.Self-Dealing
The conduct of a trustee, an attorney, or other fiduciary that consists of taking advantage of his or her position in a transaction and acting for his or her own interests rather than for the interests of the beneficiaries of the trust or the interests of his or her clients.Self-dealing is wrongful conduct by a fiduciary. A fiduciary is a person who has duties of Good Faith, trust, special confidence, and candor toward another person. Examples of fiduciary relationships include attorneys and their clients, doctors and their patients, investment bankers and their clients, trustees and trust beneficiaries, and corporate directors and stockholders. Fiduciaries have expert knowledge and skill, and they are paid to apply that knowledge and skill for the benefit of another party. Under the law, a fiduciary relationship imposes certain duties on fiduciaries because a fiduciary is in a special position of control over an important aspect of another person's life.
One important duty of a fiduciary is to act in the best interests of the benefited party. When a fiduciary engages in self-dealing, she breaches this duty by acting in her own interests instead of the interests of the represented party. For example, self-dealing occurs when a trustee uses money from the trust account to make a loan to a business in which he has a substantial personal interest. A fiduciary may make such a transaction with the prior permission of the trust beneficiary, but if the trustee does not obtain permission, the beneficiary can void the transaction and sue the fiduciary for any monetary losses that result.
The laws pertaining to self-dealing are found mainly in case law, judicial opinions, and some statutes. Case law authorizes the recovery of monetary damages from the self-dealing fiduciary.
One of the most notable statutes relating to self-dealing is 26 U.S.C.A. § 4941 (1969), which allows the Internal Revenue Service to impose a five percent excise tax on each act of self-dealing by a disqualified person with a private, nonprofit foundation. Disqualified persons include substantial contributors to the foundation, foundation managers, owners of more than 20 percent of the foundation's interest, and members of the family of disqualified persons. If the self-dealing act is not timely corrected, the IRS may impose on the self-dealer an additional 200 percent excise tax on the amount of the transaction.
Further readings
Volkmer, Ronald R. 1992. "Breach of Fiduicary Duty for Self-Dealing." Estate Planning 19 (September–October).Cross-references
Attorney Misconduct.
West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
self-dealing
n. in the stock market, using secret "inside" information gained by being an official of a corporation (or from such an officer) to buy or sell stock (or real property wanted by the corporation) before the information becomes public (like a merger, poor profit report, striking oil). Self-dealing can also apply to general partners of a limited partnership who do not inform limited partners of business opportunities which should belong to the partnership. Self-dealing can result in a lawsuit for fraud by shareholders. Self-dealing with securities is a crime under the Federal Securities Exchange Act.
Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
I have IMO TOTAL confidence in that Patricia Dillon L. Esq. of the Cincinnati Law Firm, in which she is a PARTNER, F. B. and T. is SELF DEALING.
Where did all the good stuff go like diamond and gold jewelry my father gave her over much time?
Those ar FAMILY HEIRLOOMS DAMN IT NOT BAUBLES FOR YOU TO SPREAD AROUND IN THE MANNER THAT IS SELF DEALING.
Patricia knows but ain't telling, eh Patricia?
I really want the family photo books Patricia.
I truly want my son back, Patricia.Dillon L. Esq.
I was self made and successful until my son's mother, Kimberly Colangelo, left the Good Sam Psyche ward and decided to hook me....but to deny my mother, your client who lost so much family to the Nazi's, one of her deepest wishes for my son and me together, secure like I used to be before him, is so far beyond just evil and self interest...self-dealing....it is something only the Devil would understand and applaud.
I now know why you were not asking me about anything my mother wanted (yeah, except for the cover your ass, after death question about what my mother would want while Dead...ON HER HEAD STONE... SLIME PATRICIA, Slime...and I have those emails, the only time you asked me about what my mother would want...BUT when I told you what my mother would want while she was alive, you did not care to listen to her or me...you were self dealing Patricia.
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