The plaintiffs advanced $60,000 to the defendant, claiming it was a personal loan.
The defendant argued the funds were intended for a high-risk investment in a third-party lending business.
The court found that the plaintiffs knew the funds were for an investment, but the defendant only invested $26,000 and secretly retained $34,000 to reduce his own exposure to the scheme.
The court ordered the defendant to repay the $34,000 he misappropriated, but dismissed the claim for the $26,000 that was actually invested and lost when the scheme collapsed.