Cengage Advantage Books: Foundations of the Legal Environment of Business 2nd Edition by Marianne Jennings, Albert Napier, Marianne Jennings

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Rooney Enterprises Inc. operated a cemetery in Franklin County, Virginia. A state law requires companies that receive advance payments for funeral expenses and burial plots to put those funds in a special trust account. Instead of doing so, Rooney used the funds for operating expenses. Rooney later became insolvent, so all customers who had prepaid for their burial plots and expenses lost both their money and their plots. The Virginia Attorney General brought criminal charges against Patrick Rooney, as president, for his failure to follow the requirements for trust fund deposits. Mr. Rooney said that he was unaware of the requirement, that the requirement was not in effect when his company purchased the cemetery, and that only the company could be prosecuted for the failure to follow the requirements for trust funds. Decide whether Mr. Rooney should be convicted. [Rooney v. Com., 500 S.E.2d 830 (Va. App. 1998).]