Legal Question in Business Law in California

I invested into a business with an individual who breached the contract within months. Consequently he entered into another contract within the same industry with another, promising me my money back within a few profitable months. since then he has conducted illegal and unscrupulous business practices in the new business. In addition he is being charged for not registering as a convicted sex offender in his new residence. If i sue him in small claims, my worry is that if i win a judgement i won't be able to collect because he'll either be in jail or simply be a deadbeat. Question. will i be commiting extortion if i reveal the firsthand knowledge that i know to all my contacts in our mutual industry of his unethical business dealings and his current court proceedings if i don't get my money back. In my statement nothing will be fabricated,(no need to) and i'm not profiting a penny just getting my money returned. If not for this i feel i have no other leverage. thank you, david


Asked on 11/23/10, 4:40 pm

1 Answer from Attorneys

Yes, that would be extortion, just as if you threatened to tell his wife about an affair or to publish compromising pictures. Truth is no defense to extortion and neither is that you claim you are owed the money. Legal procedures for collecting debts exist specifically to preclude self-help remedies like this.

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Answered on 11/28/10, 7:59 pm


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