Legal Question in Business Law in California

fund withdraw

My husband and his friend got to know a builder who was looking companies to move to a facility in Mecede, Ca. He claimed that he is familiar with biotechs and has connections with FDA through politicians he knew in California. He told them that FDA has interests regulating botanicals and supports private research for botanical regulations through a matching fund. These two guys trusted him and contributed $50,000 each to a common fund for the purpose of acquiring the FDA funding for botanicals. This builder was supposed to contribute $50,000. They sent the fund to this person��s company (actually a construction company). This builder was responsible for acquiring a FDA agreement and setting up the framework for the project. Half year has passed, and he has never done anything. Apparently he does not have the qualifications and experience applying a FDA healthcare fund. My husband and his friend contacted this person to withdraw the money. No response was obtained. We found this guy was involved with other civil cases and was put in lien by state. We gave up the hope he would return the money voluntarily. Your legal advice will be greatly appreciated.


Asked on 2/04/07, 7:32 pm

4 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: fund withdraw

Good luck. I wouldn't expect to ever see your money again, unless the criminal courts impose repayment as part of a plea deal. This sounds like a scam, and those kind of people seldom have any money left when caught. You can spend the money to sue, but I would require some investigation of the defendants and their assets before taking your money for the case. There is no point spending good money after bad, chasing a deadbeat.

I have not heard of 'FDA loans', and if they do exist, there would be substantial paperwork and legal requirements involved in submitting applications, to any bureaucracy, that you haven't mentioned. Next time, do your due diligence and get the help of counsel before entering major legal agreements and investments.

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Answered on 2/05/07, 1:56 pm
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: fund withdraw

This is really just a collections case. The culprit took your money and now refuses to return it. You may be able to sue for fraud as well, but getting a judgment for fraud is likely a long shot. Absent other facts, you can most likely obtain a judgment for money.

We litigate collection and judgment enforcement cases statewide. Call or email if you need assistance.

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Answered on 2/04/07, 8:25 pm
Larry Rothman Larry Rothman & Associates

Re: fund withdraw

You probably would have to file a lawsuit against him to recover your funds. You may even have a fraud action. Maybe a strong letter from an attorney may assist in solving your problem. Please contact our office if you have any questions. We would need to review your documentation.

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Answered on 2/05/07, 8:23 am
Matthew Mickelson Law Offices of Matthew C. Mickelson

Re: fund withdraw

It sounds like you have a possible fraud/breach of contract case. Your only remedy may be to sue; but if there are other lawsuits ongoing, and state liens, it may turn out to be very difficult to recover any of the money paid. Please feel free to contact me if you would like to discuss this further.

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Answered on 2/05/07, 1:11 pm


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