LAS VEGAS, September 14 2026— Kaempfer Crowell attorneys Melissa Saragosa-Stratton and Keith Williams secured a decisive trial victory for their clients in a complex corporate custodianship dispute involving breach of fiduciary duty, shareholder rights, and allegations of fraud.
The case arose after a corporation’s directors resigned and a third party was appointed as custodian. Over the next five years, the custodian reshaped the company’s ownership and operations: he named himself sole director, entered into multiple contracts with entities he controlled, issued millions of shares to himself and family members, and suspended the corporation’s SEC reporting obligations.
Kaempfer Crowell’s clients ultimately intervened in the custodianship proceedings to protect their interests as shareholders, asserting claims for breach of fiduciary duty. The custodian countered with claims seeking to cancel the clients’ shares and allegations of breach of contract and fraud.
Following a two-week trial, the court rejected every fraud claim against Kaempfer Crowell’s clients, preserved their shares, and entered a $579,000 judgment in their favor for an unpaid corporate loan.
The court also ruled for the clients on their breach of fiduciary duty claims, ordering sweeping relief that unwound nearly all of the custodian’s actions over his five-year tenure. Among other remedies, the court:
- Removed the custodian from his position;
- Cancelled the millions of shares issued to the custodian and his family;
- Rescinded and voided the corporation’s contracts with entities the custodian controlled; and
- Barred the custodian and his family members from ever serving as directors or officers of the corporation.
The result restored the corporation’s proper management, protected the clients’ ownership stake, and delivered a substantial monetary recovery, bringing a years-long, high-stakes dispute to a decisive close.
Business Litigation at Kaempfer Crowell
Kaempfer Crowell’s litigation attorneys represent businesses, corporations, shareholders, and other clients throughout Nevada in complex commercial disputes, including corporate and shareholder conflicts, breach of fiduciary duty, contract disputes, and business torts with a focus on protecting clients’ interests and minimizing the impact of litigation on their operations.
Melissa Saragosa-Stratton and Keith Williams represented the clients in this matter.