I believe my business partner has been miss using funds that I invested into the company.

Asked about 2 years ago - Castle Rock, CO

I invested 6 figures into what was supposed to be a tax sheltered investment opportunity. And I think that my business partner's wife may have misappropriated my investment, and taken other funds from another company that my partner owns to keep the initial investment solvent.

Attorney answers (4)

  1. Robert John Murillo

    Contributor Level 20


    Lawyers agree

    Answered . Speak with a business attorney today. There are so many issues at play that impact your rights and options including securities laws and other issues. You should act quickly and this requires legal advice.

    This answer is for informational purposes only and is not legal advice regarding your question and does not... more
  2. Thomas Porter Howard


    Contributor Level 8

    Answered . The facts that you have set forth suggest that you may have a claim under Colorado state law for breach of contract, if a contract exists. You also may have a basis for additional claims such as breach of fiduciary duty, civil theft and fraud, as well as others. If you would like to conduct a free consult and discuss this matter in more detail, feel free to give me a call at 303-665-9845.

    The information that is placed in this response is for informational purposes only and does not create an attorney-... more
  3. Robert V Cornish Jr.

    Contributor Level 16


    Lawyer agrees

    Answered . First, take a look at the offering document you should have received for this investment. If there isn't one, there are a host of other issues. But assuming there is one, there should be procedures in there for sending inquiries to the company, steps required for legal action, etc. What you are most likely looking at is an accounting action, which means having a court trace the assets to whomever has misappropriated them. You may also have securities law issues that need to be addressed, as well as tax matters. It may well be that your tax shelter treatment may no longer be in effect.

    Happy to assist further if need be off-line.

    The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client... more
  4. Michael T Millar


    Contributor Level 19

    Answered . I agree with Mr. Murillo. If you investment is in jeopardy you should move quickly to ensure that it is not being misused. Speak to a local business attorney with litigation experience ASAP.

    If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education... more

Related Topics

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An LLC (limited liability company) is a business entity that has elements of both a corporation and a partnership (or sole proprietorship).

Criminal charges for fraud

Fraud is a white collar crime in which someone deceives another to secure unlawful or unfair benefits, such as financial or political gain.

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