971472 Greenberg v. Commonwealth 04/17/1998 Because the Consumer Finance Act authorizes restitution only from a "lender", the trial court judgment imposing such an obligation on a majority shareholder

State: Virginia

Court: Supreme Court

Docket No: 971472

Case Date: 04/17/1998

Plaintiff: 971472 Greenberg

Defendant: Commonwealth 04/17/1998 Because the Consumer Finance Act authorizes restitution only from a "lender

Preview:Present: All the Justices

JEROME GREENBERG

v. Record No.  971472  OPINION BY JUSTICE CYNTHIA D. KINSER
        April 17, 1998
COMMONWEALTH OF VIRGINIA, EX REL.
ATTORNEY GENERAL OF VIRGINIA

FROM THE CIRCUIT COURT OF THE CITY OF RICHMOND
Theodore J. Markow, Judge

In this case, the Commonwealth of Virginia seeks restitution from Jerome Greenberg, chairman of the board and majority shareholder of Allstate Express Check Cashing, Inc. (Allstate), of all amounts Allstate received from borrowers in connection with its cash advancement loan program in violation of the Consumer Finance Act (CFA).  The Commonwealth proceeded on two theories under which to hold Greenberg personally liable:  (1) actively participating in the commission of the illegal conduct; and (2) piercing the corporate veil.  The trial court refused to pierce the corporate veil but held Greenberg personally liable by applying an active participation theory.  Because we find that Code

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