Legal Question in Business Law in California

Business Partner taking money

After recently looking over my business accounts, I discovered that in the last 3 months my partner has withdrawn nearly 2 million out of our 2 shared business accounts. There is no paper trail for this money (checks written) just that he went into the bank and withdrew it. When confronted he said he was paying off debts and products we bought but he has no receipts, invoices, anything. I have not taken any money from the accounts except to pay employees and bills (with company checks). The company looks as though it is making ''profit'' from deposits, but lately there has been very little in the accounts. I am extremely worried about the company, taxes, where the money is going, how I am going to look in all this with my name attached to the account. I am trying to get bank records of everything so I can find out what is going on, but am not sure how and if to take legal action against him. Any advice would be appreciated.


Asked on 10/30/07, 5:40 pm

6 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Business Partner taking money

You may have to file a lawsuit against him. We would have to review the documentation that you have. Please call us if you need any assistance.

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Answered on 11/14/07, 10:24 am

Re: Business Partner taking money

You should act IMMEDIATELY to protect yourself and prevent further improper losses from your partner. You should also act to make sure that you do not have any liability for actions he may have taken on behalf of the partnership.

In short, considering the size of the withdrawals, you should have an immediate sit down with an attorney, preferably a litigator, to discuss your partnership agreement and options.

Let me know if you would like to meet.

Caleb

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Answered on 10/30/07, 5:44 pm
Terry A. Nelson Nelson & Lawless

Re: Business Partner taking money

You're not sure??? You've been embezzled out of $2M. Stolen! Go immediately to the police and file criminal charges. Go immediately to an attorney and discuss your civil remedies and corporate actions to take. Among other things, you need to get him removed from all accounts, IMMEDIATELY. Feel free to contact me if you finally admit to yourself the reality of what's happened, and you are ready to take protective and remedial action.

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Answered on 10/30/07, 5:54 pm
John D. Williams Law Offices of John D. Williams

Re: Business Partner taking money

You must immediately notify your bank to not allow any further activity on the accounts by your partner.

Then you should retain a litigation attorney to meet with you and your partner.

If would like a free initial consultation, please telephone me. I have over 25 years experience.

Good luck and thank you for your inquiry.

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Answered on 10/30/07, 5:56 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Business Partner taking money

I agree with the prior three responses, except for Mr. Williams' recommendation that you and your partner both meet with an attorney. You and your partner are going to be adversaries in whatever happens next, and trying to represent both of your interests would pose an irreconcilable conflict of interests for any lawyer.

You need to meet with a lawyer on your own and take immediate steps to recover the funds your partner has stolen and to protect yourself from any avoidable consequences of his actions.

Do not try to handle this matter by yourself. There are any number of mistakes you could make that would seriously compromise your position. With so much at stake, hiring a competent lawyer will be well worth the cost.

Please feel free to contact me if you wish to discuss your situation further.

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Answered on 10/30/07, 6:05 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Business Partner taking money

You must act as any delay may implicate you in the embezzelment. Contact me directly.

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Answered on 10/30/07, 7:02 pm


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