Bill, Fred and Diane are partners in a clothing manufacturing company. Business is expanding exponentially. Fred finds out that an abandoned building perfect for expansion is available and the seller will take $1.5 million for it which is $300,000 below fair market value. Fred has his brother-in-law buy the building who gets it for $1.4 million. Fred convinces Bill and Diane to have their partnership buy it and they do for $1.7 million ($100,000 below fair market value). Fred lets his brother-in-law keep $10,000 of the sale proceeds and pockets the rest. Ten years later Fred's partners find out what he did. They can still sue him for damages and win.

True or False