Sveum v. Stoughton Lumber Co.

OPINION & ORDER

WILLIAM M. CONLEY, District Judge.

Appellant Phillip A. Sveum was an officer and owner of Kegonsa Builders, Inc. (“KBI”), along with his brother, Peter Sveum.1 The Sveums obtained supplies for *773KBI’s home construction business from various subcontractors, including Stough-ton Lumber Company. Rather than segregate a proportionate share of funds KBI received from construction draws to pay those subcontractors as required by both contract and statute, however, KBI instead deposited the funds into a general account to be used for operating expenses, payroll and other bills. In the…