Hypothetical #2:

Bob the Broker is an insurance agent who specializes in retirement investments and insurance for elders. He convinces his clients to invest in funds to supplement their retirement income. Instead of investing the money as promised, Bob takes the money and uses it for his own real estate investment business. The insurance company discovers what Bob is doing during an audit and fires him.

QUESTION #5:

What crime(s) did Bob commit?

QUESTION #6:

If the insurance company sues Bob, what cause of action should it bring?

QUESTION #7:

List the elements of the cause of action you identified when answering Question #6 and apply them to the hypothetical. (Note: you may do an internet search for elements of cause of action if the lecture notes do not cover the one you chose.)

QUESTION #8:

Who is most likely to win: the company or Bob? Explain your reasoning. What will be the easiest elements for the company to prove? The most difficult elements?

QUESTION #9:

If Bob pays a return on the elders' investments as promised, does that change the outcome of your analysis above? Why or why not?