Shisgal v. Brown – Case Brief Summary (New York)

In Shisgal v. Brown, (21 AD3d 845, 801 N.Y.S.2d 581 [1st Dept 2005]) the plaintiff alleged, with the support of substantial documentary evidence, that the defendant companies falsely represented that loans made by the plaintiff were to be used for working capital when in fact the companies' funds were, as a matter of regular and continuous practice, used to pay for personal expenses such as plastic surgery and parking tickets, and that the defendants operated the company without regard for any bookkeeping formalities.