Self-dealing is the conduct of a

trustee Trustee (or the holding of a trusteeship) is a legal term which, in its broadest sense, is a synonym for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility to ...

, attorney,

corporate officer Corporate titles or business titles are given to corporate officers to show what duties and responsibilities they have in the organization. Such titles are used by publicly and privately held for-profit corporations, cooperatives, non-profit ...

, or other

fiduciary A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exa ...

that consists of taking advantage of their position in a transaction and acting in their own interests rather than in the interests of the beneficiaries of the trust, corporate

shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal o ...

s, or their clients. According to the political scientist Andrew Stark, " self-dealing, an officeholder's official role allows her to affect one or more of her own personal interests." It is a form of

conflict of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations i ...

. Self-dealing may involve misappropriation or usurpation of corporate assets or opportunities. Political scientists Ken Kernaghan and John Langford define self-dealing as "a situation where one takes an action in an official capacity which involves dealing with oneself in a private capacity and which confers a benefit on oneself." Examples include "work ngfor government and us ngyour official position to secure a contract for a private consulting company you own" or "using your government position to get a summer job for your daughter." Where a

has engaged in self-dealing, this constitutes a breach of the fiduciary relationship. The principal of that fiduciary (the person to whom duties are owed) may sue and both recover the principal's lost profits and disgorge the fiduciary's wrongful profits. In the United States, repeated self-dealing by a private foundation can result in the involuntary termination of its tax-exempt status.Fremont-Smith, Marion (2009).
Governing Nonprofit Organizations: Federal and State Law and Regulation
'. Harvard University Press. p. 271.

References

Legal ethics Conflict of interest {{law-stub

See also

References