CFO's neglect of accounting and tax filings enough to file suit?

Asked over 1 year ago - Fort Pierce, FL

Partnered with company so they could handle the day to day and we both contributed a profit sector of business that was existing.

Took 4 months to get a company bank account while I continued to work out of our previous bank account.

5-6 P&L statements (that are inaccurate) in 2 years.

Send copies of K-1 filings to myself and said had submitted on my behalf. Contact with IRS is no filings for the company PERIOD over last 2 years to date.

Inability to drive business decisions based on timely and accurate numbers cost a lot. Earnings taken from majority surely way off.

I contributed $100,000 initial capital which was supposed to be replaced by majority but never was.

They had a duty to provided me with proper accounting and to file taxes. Either ignorance, stupidity or fraud!

Attorney answers (3)

  1. Thomas Michael Bates

    Contributor Level 13


    Lawyers agree

    Answered . I agree with my colleague Ms. Stevens - you need to consult a lawyer who handles business litigation. Your investment in this matter is large so you don't just rely on what little advice you get in this or any other email forum.

    I am not seeking to represent you based on the response to this question. The answer given is for general... more
  2. Inga L Stevens

    Contributor Level 16


    Lawyers agree

    Answered . You have asked several questions. It seems very clear that it is in your best interest to consult with a local business attorney. Avvo is a simple Q&A site. You need more help than can be provided here. You can use the "Find a Lawyer" tab here at Avvo to search for someone local.

    Attorney Inga Stevens is licensed in Maine. She provides general information on No attorney-client... more
  3. Nishat Azam

    Contributor Level 11

    Answered . Yes you can file suit but whether you will be successful in favorable judgment for you and against the CFO depends on various factors, including but not limited to the company bylaws or operating agreement, fiduciary responsibilities and violation thereof plus all this in light of the law. As Counsels mentioned, the best advice is to seek help from a local business litigation Attorney. Good luck to you.

    DISCLAIMER: This answer is provided solely for informational purposes only. This answer does not constitute legal... more

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