REMEDIES OF DEFRAUDED CREDITORS BY ARTHUR E. FIXEL, LL.B. OF THE DETROIT BAR MB ALBANY, N. Y. MATTHEW BENDER & COMPANY INCORPORATED FOREWORD. The legal consequences of issuing a false financial statement are somewhat vague in the debtor's mind. In the creditor's mind, these consequences seem decidedly clear. When the creditor summons the debtor to court on a charge of fraud arising from the issuance of a false financial statement, the judge scrutinizes the evidence with greatest care, and unless every requisite for a case of fraud is alleged and proved, the case against the debtor is dismissed. This brings to the attention of the commercial lawyer and credit-man, the need on their part, of knowing the technical rules relating to false financial statements and the rights and remedies of creditors based thereon. The writer has briefly set forth these rules. It is the writer's hope that this small volume will aid in bringing to the business public, a better understanding of the requirements of an effective financial statement so that ultimately, the financial statement, instead of being a weapon of fraud in the debtor's hands, will be a key to safety for the creditor. ARTHUR E. FIXEL. 1008-12 Hammond Building, Detroit, Michigan. March 1, 1924. 549805 FALSE FINANCIAL STATEMENTS AS A SPECIES General considerations, § 5..... Written and verbal financial statements distinguished, § 6. Financial statement must be a representation of fact, § 7.. Representation must relate to a material fact, § 8.. Falsity as to valuation basis; cost vs. market value, § 11... 54 Obligations to friends and relatives, continued, § 18.. |