This has become a common practice. Your best bet is to take a deep breath and go after them. Call until you get someone you are satisfied is a decision maker. If you don't get what you need, then try writing to them with your full story and copy the Better Business Bureau, the local District Attorney's consumer fraud division, the Chamber of Commerce (they can sometimes warn folks in your community, and if not, the telemarketer doesn't know that), if your TV stations have consumer action...
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Unfortunately, this falls in the category of impractical righteousness. You are right and you are in the right, but is it practical to go after it? At the very least, you have a claim for breach of contract, based on what Blue Cross has told you. You could file an action in Small Claims Court seeking whatever damages you suffered as a result. It might be a way to get your employer's attention. They cannot (with impunity) jeopardize your health care in that manner. If you had had a...
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In the caption, you say "business owner" and in the body of your question, you identify yourself as "an officer". Be very careful to identify you actual role. As an officer only, you will have a much lower chance of being held personally liable, but as an owner you may have a higher risk. Generally, officers who are not owners or directors are going to successfully avoid personal liability (except for payroll taxes and the like). Owners may have more work to do in avoiding the liability....
You should review your American Express credit agreement. Most likely you will discover that they can hold the individual card holder personally liable for unpaid accounts. You should also check with the District Attorney's Office about filing criminal charges for embezzlement against the office manager.
You should probably consider two contracts: The first is an employment agreement that specifies the compensation - what part is cash and what part is equity. The equity portion will generate a 1099 based on the value of the equity. Include provisions regarding such things as how much you can eventually earn in total, how is it valued, under what circumstances can your friend stop or decrease your earned equity. The second is a buy-sell agreement covering what you can and cannot do with the...