Case Study

1614 Words7 Pages
Case Study Synopsis of the Situation / Key Issues / The Problem --Founded in April 2002 by Albert (Al) Fiorini, Atlanta Home Loan (AHL) was a mortgage lending and financing co. based in Atlanta, GA. --After beginning operations in his home, Al's business grew rapidly; by summer he employed 8 loan officers, all of whom telecommuted. --In June 2002, Joe was admitted to an MBA program in California and was faced with 3 choices for AHL: sell it, shut it down, or find someone to run it. As it was a profitable business with considerable growth potential – it had 90 loan applications in the pipeline, constituting 300K in potential revenue – Al chose the latter option. --Based only on initially favorable judgments, including 20 years…show more content…
When they refused to go, Al called the police to support the firing action. Wilbur told the police that he, not Al, was the owner, and the police, not knowing who to trust, simply left. –On October 15, Wilbur opened a new account at Citizens Bank & Trust (CBT), where he did his personal business and where he knew the manager personally. Wilbur now had signing authority over checks, and wired the funds being held in AHL's corporate name at the offices of the closing attorneys into this new bank account. --After discovering the second bank account, Al called bank personnel and informed management that Wilbur had opened a fraudulent account with CBT. After CBT refused to freeze the account or return the money, Al informed Atlanta police as well as the FBI, neither of whom gave the case any attention. --Wilbur renegotiated a lease with the landlord and established AHL as his own company. Al suspected that Wilbur had used all his means of persuasion to mislead the employees in order to break their bonds with Al. In February 2003, Following the loss of his company, at least $15,000 in licensing fees, and his credit rating, Al was forced to sell his home. Alternative Solutions ---Fight to regain control of AHL, which was probably only worth about $25,000 in equipment --Build somewhere else --Give up. Selected Solution --Fight to regain his business and prevent what happened in the

More about Case Study

Open Document