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Venerini Sisters Donate Retirement Funds To Pay Debts From Fraud

The Venerini Academy got some welcome news this week. WCVB Boston reports that the Venerini Sisters who operate the Worcester private school has agreed to donate their retirement funds in order to settle outstanding debts that the school owes to construction companies. As we covered earlier on this blog, the Venerini Academy was allegedly defrauded by fundraiser Michael Hlady. Fundraiser Michael Hlady was hired by the Venerini Sisters in order to collect donations for the private school.

Unfortunately for the Venerini Academy, Michael Hlady is accused of falsely promising that he had lined up a $3 million donation for the school. As a result of this promise, the school moved forward with a renovation project. As a result, the builders sued the school. While those suits have been settled, the Venerini Sisters have used their retirement funds as an interest free loan to the school in order to pay the builders.

Michael Hlady was criminally charged with fraud, identity theft and larceny. He has chosen to plead not guilty to the charges.

While he has been criminally charged, we have discussed possible civil legal claims that are available to the Venerini Academy. If you ask a Boston personal injury lawyer, under civil law, a victim of fraud may be able to recover the money that he or she has lost as a result of a material misrepresentation by another party.

Fraud occurs when there is a material misrepresentation made with an intent to deceive another. In this particular scenario, Michael Hlady is accused of intentionally misleading the school into thinking that it would receive a $3 million donation. The party that is told this misrepresentation must rely on the misrepresentation and the reliance must cause a disadvantage. One such disadvantage is monetary losses. 

If you feel that you have been a victim of fraud, know that you have civil remedies available to you that you can discuss with a Boston personal injury attorney.

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