the case of a "good cause". Rautenberg won against the former dummy corporation, and was compensated for his loss.Gelfand v. Horizon Corp was a court case challenging the legality of firing an employee over the sale of land through a dummy corporation. Gelfand, the plaintiff, was working as a real estate agent for Horizon Corporation, and sold a large tract of land to a dummy corporation he set up in collaboration with his wife, and two interest holders, without the knowledge of the real estate company. Gelfand consequently sold the land to a third party for a profit of $57,500, and was immediately fired and denied of his commission after his actions came to surface. Gelfand won the case against Horizon Corporation, and the company was entitled to pay Gelfand's commission of his sales excluding his sale with the third party, despite Gelfand's "breach of fiduciary duty". Controversy and problems A dummy corporation is one way to "cook the books" in a dishonest attempt to hide the true financial status of a company. While the use of dummy corporations is not inherently illegal, the usage of these corporations can go against the ethics of the parent company, which can in turn spark controversy between the organisation and the public. See also Front organization Shell corporation Straw owner MEFO, a dummy company that covertly financed Nazi Germany's rearmament program prior to World War II. References Corporations Deception