A friend of mine has several LLC companies under his name. Over a year ago, he asked me to invest in a new company that he is going to open up, I will be a silent partner, and one of his other company (he is the sole member) will manage the operation. I gave him $70K, and we signed an agreement. But now it's been over a year, there is no new company and there is no sign of operation, and he did not even register the new company. I could hardly find him. I finally found him and he told me the money was lost when getting inventory in, and he lost his own money too. but there is no paperwork. In the meantime he bought a new luxury car. The whole thing just doesn't smell right. Do you think he is a fraud? Can I go to police to report this? How do I recover my money? What do you think I should do next? Thanks for your help.
2007-07-23 03:14:32 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
OMG!!! Total fraud! Do you have a record of giving him this money? I doubt you gave him cash in that amount. You need to hire a lawyer and get your money back ASAP. If you have record of the money being exchanged, no judge in their right mind is going to overlook that, especially when it involves such a tremendous amount of money. You got ripped off! Get a lawyer!!!!
2007-07-23 03:27:54 · answer #1 · answered by yankeegirl 4 · 0⤊ 0⤋
Sounds like fraud to me. If you can't get a straight answer, there is a 99% chance you'd been had. Call the cops, but chances are you won't see any of your money back. Just goes to show you that a good song and a dance isn't enough. You need to do your due diligence before investing, especially with that kind of money.
2007-07-23 10:23:21 · answer #2 · answered by dpilipis 4 · 0⤊ 0⤋
You know the answer... yet you ask the question here.
I suspect (deep down) you knew things weren't right when you got into this. You did no deep investigating and you didn't follow the use of your funds.
He didn't tell you there was a problem until you asked.
Yes, this is a fraud. But you knew this!
Learn to follow common sense and your instincts. it will serve you well in the future. Take responsibility. A passive investment doesn't mean closing you eyes.
2007-07-23 12:57:12 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
Well, you're in a difficult situation. What does your agreement say? Is he supposed to give you regular reports on the company? What rights do you have in terms of management, board of directors, etc? Maybe you should talk to an attorney in your area who knows business law.
2007-07-23 10:21:03 · answer #4 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
Uh, ya you have rights!! I would take him to court and he will have to account for the money. make him show where it was lost. You can't just say oops I lost 70K.
After you take him to court then call the IRS on his azz and tell them he is embezzling from his company.
Oh I need 20k as an investment into my real company.
2007-07-23 10:20:54 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Yes, I do believe he is a fraud. My suggestion is to contact an attorney and see if you can "freeze" his assets. As long as you have that agreement you do have rights. Also I would report this to the authorities. Make his life legally uncomfortable.
2007-07-23 10:49:51 · answer #6 · answered by egiese 1 · 1⤊ 0⤋
Ugh, I think this one is pretty obvious. It REEKS of fraud. Pretty safe to say you got scamed out of that $70,000. You can file a police report, but it's gonna be a fine line as to whether you'll get your money back or not. More than likely, you won't see a dime of that back in your hands.
2007-07-23 10:19:25 · answer #7 · answered by Todd B 4 · 1⤊ 0⤋
im sure he has done this a few times to others as well...take him to court and file police reports immediately...hope u have a signed contract, that he obviously broke...
2007-07-23 11:40:29 · answer #8 · answered by joeydubz0 2 · 0⤊ 0⤋