Legal Question in Business Law in California

Re: Fraud - How do we get our money back ?

Sounds like liening the property and suing.

Joel Selik

800-894-2889

Re: Fraud - How do we get our money back ?

As you have evidently guessed, your best course of action is probably to hire a lawyer and sue this man. It's possible that a demand letter alone will get you results, but that is unlikely. Perhaps you and your friends would want to consider joining forces and suing as a group, though the specifics of each claim might make that inappropriate.

Please feel free to contact me directly if you want to discuss the details of your case.

Re: Fraud - How do we get our money back ?

The short answer is yes -- there are laws in place that will, at least theoretically, allow you to recover your investment, as well as any other damages that you have incurred. Punitive damages may also be recoverable if you were intentionally defrauded.

The causes of action that may be available to you include fraud, breach of contract, conversion and unfair business practices.

Please feel free to call for a free consultation.

Jeff Olster, Esq.

Russakow, Ryan & Johnson

225 S. Lake Avenue, 8th Floor

Pasadena, California 91101

626.683.8869

Re: Fraud - How do we get our money back ?

In addition to the causes of action (charges or 'counts') already suggested, I would add a count for 'purchase money resulting trust,' a concept that says, in effect, that when property is acquired in the name of X, but using Y's money, X takes title as trustee for Y, and Y is the equitable owner. The only important exception is when the circumstances make it clear that a gift was intended, and since this was an investment and not a paret-to-child gift or the like, you have an excellent chance. I would also add a count for breach of fiduciary duty, since a fiduciary relationship can be inferred from the circumstances.

Finally, I would probably file and record a 'lis pendens' (a notice of pendency of litigation) along with the lawsuit. This is notice to the world that the property is the subject of a suit, and effectively prevents any sale or further mortgaging of the property pending resolution of the suit, thus protecting your interest.

Even though your ZIP code suggests you aren't in my immediate area, I have some specialized interest and experience in these cases, and I would be pleased to review your facts and give you some further consultation, if you wish.

Re: Fraud - How do we get our money back ?

It sounds like you may be being defrauded. You should bring your story to the local police department and file a police report for investigation. You will have to sue to force the issue otherwise. But, by the time you get a judgment, the scoundrel may have no assets from which to collect. Good luck and let me know if we can be of further assistance.