Legal Question in Business Law in Arizona

There are a number of facts which must be answered in order to answer your questions. Fraud requires an intentional misrepresentation of facts in order to induce you to take action to your detriment and that you have suffered damage therefrom. Did he file for bankruptcy protection before entering into business with you or after? Did he name you as a creditor? What is the business entity used, is it a partnership? Do you have a written business agreement? You have legal recourse, both to terminate his interest in the business and perhaps for damages. Feelings are not evidence or proof in court, so to claim fraud or damages may not be supported by the available proof.