Legal Question in Bankruptcy in California

interest earned called back

I invested in a financial group in 1999 and received $3500.00 interest for a period of 3-4 month.The owner in the year 2004 took all the investor's money and ran out. now the Receiver send me a letter and want me to give back the interest I got 5 yrs. ago in order to compensate the losses of the other investors. what are my options and do I have to give the money back or not and why?


Asked on 10/01/04, 2:55 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: interest earned called back

You might want to bring a motion to determine the dischargeability of the debt owed to you. It seems as if this was a "confidence" scheme, and that the money was not invested at all. A debt for fraud is not dischargeable.

As to the receiver's demand, without knowing more, I can't see the basis for something that occurred 5 years ago. The statute of limitation on fraud and conversion in California have long run.

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Answered on 10/01/04, 5:42 pm


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