Legal Question in Business Law in California

Re: Credit Fraud?

i believe it is a theft and should be reported to the police

Re: Credit Fraud?

Yes you have a case. Probably cannot stop future business though.

Joel Selik

www.4thelaw.com

800-894-2889

Re: Credit Fraud?

I don't know that this is "credit fraud" per se, but you have a variety of causes of action you can bring against this individual. As Mr. Koury suggests, you might want to report this to the police; if he stole merchandise from you they will be more likely to go after him than if he stole only information.

I don't know that there is a federal case to be made here because the facts you have provided don't include the factors necessary to invoke federal jurisdiction. All of your civil claims would have to be in a single lawsuit, and that would most likely be brought in state court.

Re: Credit Fraud?

Reading your posting immediately suggested eight to ten counts or causes of action that could be alleged in a civil lawsuit, several of which would be federal, opening up the possibility that the suit could be filed in federal court. This is not, however, necessarily your best forum.

You should assemble all the facts and present them to an attorney in an initial conference as soon aas possible. You may be entitled to a temporary restraining order and/or injunction as well as other relief.

California law strongly favors competition and freedom to pursue any occupation or business. It equally strongly disfavors (and punishes) the misappropriation of business property, including customer lists in any form, etc. etc.

The main issue in your case will probably be separating what the ex-employee could lawfully do from what is not permissible. This may be relatively easy if you can document everything that happened.

Your potential lawsuit should focus on the charges that can be proven by your evidence, for which the defenses are weak, and where you can recover the most damages, perhaps including attorney fees and/or punitive damages. Credit fraud may or may not be such a claim, but the best practice is to allege everything then do discovery to find out your strong suits.