Gandolf

I'm interested in filing fruad charges

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My situation has nothing to do with credit repair, so I hope I'm posting it in an appropriate place here to get advice.

About 9 months ago, a guy who had been a close friend of mine solicited me to go into business with him. The business was going to involve being an online vendor of products. We signed a contract stating that we would be splitting the upfront costs of the business, until it turned a profit. My business partner started requesting funds for costs he says he incurred. I paid the costs for awhile but the amount started to become more and more dubious and at one point I asked him to please provide some type of documentation (i.e. a receipt for statement from his credit card) to verify the charge before I paid him my share of the costs. It was stated in our contract that either of us may review any and all company records at any time for any reason. He got extremely defensive, accused me of breaking the contract for not continuing to shell out money without asking any questions, and things got very nasty between us in a number of e-mails. One of the "business costs" he claims I owed for was a company that sets up merchant accounts, and he said we paid 2500 dollars just to apply, and this was a company that didn't provide favorable terms so we weren't going to use them. I checked with the company and they offer free applications so I'm 100% sure he was lying about this charge.

After a week or two of this, he agreed to buy me out for the amount of money I had put in to the company (just under 3500 dollars) and I accepted his terms. He sent me an e-mail asking me to write up a resignation letter and have it notorized and sent to him. I complied and it was specified in the letter that I was retiring from the business and selling my shares of the company to him for the agreed upon 3500 dollar price. After waiting several weeks I contacted him (he was supposed to e-mail me once he received the letter but hr never did) and asked when he would be able to send the money. He responded back saying that by law he has 90 days to pay me, even though this was not specified in our e-mails. I sent him a response pointing out that this was never specified and that he already had more than enough liquid cash to pay me. He responded saying that he would not be reading anything else I send him.

I patiently waited the 90 day timeframe (which I don't even know if I had to by law) and I have not heard anything from him. Just to clarify, I have our original signed contract and I have all of his e-mails, in which he makes explicitly clear that he will buy out my portion of the company and he never did.

I am very confident in my ability to sue this person in small claims court, but I am hoping I can go another step further and press charges for felony fraud. Can anyone point me in the right direction for that? I'm not even sure where to go. Also, if there is any other recourse I have against this person I would be happy to hear any suggestions and ideas. Thanks in advance and if you need any more information from me to clarify anything, please let me know.

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Most of the people on this forum are not lawyers.

Most, if not all, of the lawyers on this forum are in states different from yours. They also specialize in consumer law. They also do not have all the facts of your case.

Find a good lawyer in your area.

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Contract law always seems as if it should be cut and dry and yet it never is.

Personally I wouldn't have allowed him to buy me out for only the amount I originally paid into the company. No way. If you are turning a profit then that's because of your money as well. Also without knowing explicit terms of contract its hard to give you advice.

Best bet is to get a forensic accountant, and a consult from a commercial contract litigator.

To make a charge of fraud you want to have grounds to do so. Then have proof. Then file a complaint to proper authority, which differs in states.

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Contract law always seems as if it should be cut and dry and yet it never is.

Personally I wouldn't have allowed him to buy me out for only the amount I originally paid into the company. No way. If you are turning a profit then that's because of your money as well. Also without knowing explicit terms of contract its hard to give you advice.

Best bet is to get a forensic accountant, and a consult from a commercial contract litigator.

To make a charge of fraud you want to have grounds to do so. Then have proof. Then file a complaint to proper authority, which differs in states.

The company hadn't yet turned a profit, he had bought our inventory and had our website created. I wasn't thrilled with only getting back the money I spent but I was willing to accept those terms in order to make sure I didn't lose money, and to just have the situation resolved and over with as this was a major pain in the butt.

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