Three accountants formed a partnership. Deodati was a client of McCreight, one of the partners. Deodati authorized

Question:

Three accountants formed a Deodati was a client of McCreight, one of the partners. Deodati authorized McCreight to buy and sell certificates of deposit on his behalf. McCreight stole Deodati's money, generating fictitious income statements to conceal the fraud. The other partners knew nothing about the fraud. Deodati paid the $3,500 for accounting services. When another partner uncovered the fraud, he notified Deodati, who sued the for his losses. The trial court awarded Deodati $290,000 and imposed joint and several liability upon the and the individual partners. The innocent partners then filed for bankruptcy. Deodati sought to prevent them from discharging the debt because it arose from fraud. The trial court held for the innocent partners.
Deodati appealed. Are the innocent partners liable?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...