Legal Question in Business Law in California

is this extortion?

My employer informed me that after a year of faithful service to her , she will be shutting down the business (landscaping design & maint ) .Being the glue holding the business in the red, i would like to ''buy'' her accounts and continue the work. Here's the issue:she has been operating this business for over 3 years w/out insurance,paying taxes, having a license to operate and the like,BUT pullling in about 60 grand a year. On top of it, she is collecting SDI and SSI due to work related disabilites from a past employer. My dilemma: would i be committing an extortive act punishable by law if i were to ''suggest'' that she ''donate'' her existing business accounts/equipment to me, OR offer an agreeable severance package that may include such business implements, in order to prevent me from filing for unemployment insurance which would thereby alert the appropriate agencies of her inproprieties?( of which i have ample proof of in various forms and functions). Or perhaps even alerting the proper authorities myself if she did not comply with my ''requests''. Is there a way that i can legally have/save this business without being held accountable for her illegal operation/activities? Thanks for your anticipated response!


Asked on 3/22/07, 12:37 am

3 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: is this extortion?

Sure sounds like extortion to me. Sorry.

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Answered on 3/22/07, 2:29 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: is this extortion?

Yes, this is a classic example of extortion.

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Answered on 3/22/07, 12:05 pm
Terry A. Nelson Nelson & Lawless

Re: is this extortion?

I strongly suggest you don't play the extortion game you suggest. Simply offer to buy the company name and list of accounts. You can then open a new business with that name.

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Answered on 3/22/07, 2:52 pm


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