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Clark, a trusted employee of CRT Communications, embezzled $10,000 from the company. First, Clark used $5000 to purchase various building supplies to make home improvements.
Clark, a trusted employee of CRT Communications, embezzled $10,000 from the company. First, Clark used $5000 to purchase various building supplies to make home improvements. The improvements actually enhanced the fair market value of the home, however, by just $2000. Clark took the remaining $5000 and placed it into a bank account which already contained $2000 of personal funds. Consider the following sequence of transactions: T1: Deposit of $5000 added to original $2000. T2: Withdrawal of $2000 to purchase 100 shares of stock in Highflier Corp. The stock has advanced to a current market value of $4000. T3: Withdrawal of $3000 to pay for miscellaneous living expenses, leaving a balance of $2000 in the account. T4: Deposit of $1000 for a final balance of $3000 1. What would be the equitable interests that CRT could assert against the bank account and the stock according to the rules in Clayton's Case, Hallett's Estate, Oatway, and the old and new Restatements
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