I lent someone money on the understanding that it was to be invested in his business and that I was to be a share holder. The money was used to put a deposit on buying a house, against my knowledge. This house has now been sold. The money was never recovered and the person has now filed as a bankrupt.
2006-12-04 01:05:19 · 21 answers · asked by grottie2000 1 in Business & Finance ➔ Personal Finance
No. Money laundering is taking money from shady things like drug dealing and make it it legitimate money through various means.
2006-12-04 01:08:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This is not money laundering as such, money laundering is filtering the proceeds of crime and usually relates to drug trafficking etc.
Whoever you lent the money to has obtained the money by deception - this is a crime, the problem is proving it!
Did you have an agreement in place about the business?
Can you provide proof of lending the money?
Either way, as the other party has filed as a bankrupt, the likelihood is that you will be unable to recover it.
I think you should take legal advice from a solicitor, most small local firms offer legal clinics at weekends for free, check your local newspapers.
Citizens advice centres may be able to help also.
2006-12-05 13:11:45 · answer #2 · answered by Emma K 2 · 0⤊ 0⤋
No. Money laundering is cash in hand money which has not been declared for Tax purposes and property buying was a way of hiding this money from the Tax man. When the property was sold at a later date, tax would only have to have been paid on the Capital gain, so it was a way of hiding taxable money from the Tax man. Investing in a business is not money laundering, but it would have been wise for you to have had a Contract drawn up. As the person has now filed for Bankrupcy there is practically no chance at all for you to get your money back, or indeed, ever be entitled to it back. If the money you loaned your friend had not been declared for tax purposes. For example, the money did not come from your wages where the tax is usually deducted by your employer, then you would still be liable for the tax on this money. Hope this helps.
2006-12-04 09:24:11 · answer #3 · answered by patsy 5 · 0⤊ 0⤋
Nope. Money laundering is turning dirty money(illegal got and gains) into clean money by investing it into various business ventures, depositing it, etc..... It's what crooks do to so they can use their spoils. Remember, any deposit of more than 10, 000 dollars cash will be reported to the Feds.
You, my poor fellow, have been taken. This is fraud, criminal fraud. A person cannot take business funds and use them for person things. An exception would be taking profits as income. I'm guessing this was a house flipping venture with your money. The housing market, in some areas, has gone downhill and the guy lost the house and your money. Hopefully, you have something in writing explaining what the funds were suppose to be used for??? If not, it's your word against his. Call a lawyer today!!!!!
The sad part is, even if you take the guy to court, win and he goes to jail-the guys supposedly bankrupt. He may have nothing left to lose, and you nothing to gain. I say but him in jail, take everything he has to pay yourself back. Stand in line though. I would imagine he has many creditors waiting in front of you.
2006-12-04 16:25:11 · answer #4 · answered by ontopofoldsmokie 6 · 0⤊ 0⤋
That's theft, but not money laundering. Laundering occurs when stolen money or money obtained thru illegal activities, like drug dealing, is deposited into a legitimate bank (with the cooperation of some bank employee) into off-shore bank accounts or into a legitimate bank account under a seemingly normal individuals name. Then the criminal types depositing the money have access to the account where the money is without raising any suspicion of law enforcement folks.
2006-12-04 09:22:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Please find a good tax attorney and ask if he can prepare a section 165 claim for you. It is an IRS remedy for theft loss. It's a way to deduct the loss against your taxes. This "loss" can carry forward until you use it up. Not the same as real money in hand but it beats the hell out of nothing at all.
You MUST file for this the same year the investment debt becomes uncollectable. Do not delay.
Sorry it happened.
2006-12-04 11:22:03 · answer #6 · answered by upside down 4 · 0⤊ 0⤋
no it sounds more like fraud, ring your local police station (dont dial emergency number, use the switchboard) and they will be able to advise you as to whether a crime has been committed and if so you could press charges. As per the bankruptcy you need to add yourself to the list of creditors to have a chance of recovering your money - but move fast - get advice from a lawyer on the bankruptcy aspect. but if you cant prove lending the money, not sure what chances you have of getting it back.
2006-12-04 09:11:09 · answer #7 · answered by Helen C 4 · 1⤊ 0⤋
not money laundering but sounds like a big scam to get your money....hope you had something in writing, if so take the paperwork to a lawyer and see if you can sue this person
2006-12-04 09:13:41 · answer #8 · answered by churchonthewayseniors 6 · 0⤊ 0⤋
That does sound like Fraudulent behaviour. As the saying goes " A fool and his money are easily parted"
2006-12-04 09:14:13 · answer #9 · answered by dm_overton 3 · 0⤊ 0⤋
YOu should have got a reciept forthe transaction, then you would now count as one of his creditors and should be able to apply for some money back
2006-12-04 09:09:53 · answer #10 · answered by Litmus180 3 · 0⤊ 0⤋