Did Lieben act ethically in this case? Could Reaves have prevented the fraud and embezzlement by keeping better track of his company's financial affairs?

Speedsportz v. Lieben 2013 Bankx, Lexis 3783 (2013) United States Bankruptcy Court for the Northern District of Georgia "Dear Thief,' she wrote in her diary, 'T'm writing' this letter to understand you better and ask why you're such a dominant archetype in my life." -Bankruptey Judge Facts John Reaves is the sole owner and president of a small business called Speedsportz, LLC, which is in the business of refurbishing exotic automobiles. Reaves had been in this business for about 30 years when he met Angela Lieben. Shortly after meeting. they started dating and Lieben moved in with Reaves, who hired her as his company's office manager and bookkeeper. Lieben's duties included paying bills. reconciling bank statements, and entering information in the company's aecounting software. Several years later, Reaves ended their relationship and terminated Lieben's employment. Reaves then discovered irregularities in the company's bank statements, ehecks that were written by unauthorized and fonied signatures, eash that was missing, and unauthorized ATM withdrawals. Evidence showed that Lieben had previously been convieted of forkery. Lieben subsequently filed for personal banknuptcy. Speedsportz and Reaves filed appropriate documents with the bankruptoy court, alleging that Lieben's debt from her defaleations was not dischargeable in bankruptcy because they had been committed by fraud or embezzlement. Issue Did debtor Lieben's defalcations result from fraud or embezzlement and were therefore not dischungeable in bankruptcy? Language of the Court "Dear Thief," she verote in her diary, "I'm seriting this letter to understand you better and ask eslyy you're stich a dominant archetype in my life." Debtor Angela Lieben (continued) says this swas just part of a fictional short story she was coriting. Plaintiff Jolin Reaves claims this letter was cvidence that his former live-in girlfriend and bookkecper stole money from him. Entries in Licben's diarics and personal emails implicate her generally in this type of conduct against Reaves. The court finds that Lieben is liable to Speedsports for the unauthorited transactions and concludes that these debts are nondischargeable because she committed fraud and emberetement. Decision The U.S. bankruptey court held that Lieben had committed fraud and embezzlement and was liable to Speedsportz for \$49,232. The bankruptcy court ruled that this amount owed to Speedsportz could not be discharged in Lieben's bankruptey. Critical Legal Thinking Questions Did Lieben aot ethically in this case? Could Reaves have prevented the fraud and embezxlement by kecping better track of his company's financial affairs