Legal Question in Criminal Law in California

Hello...I have a big headache situation with former partner.

It might be long writing. Please understand my bad writing.

Here is story:

-I have 2 other partners, started and bought a restaurant in San Francisco, California 11/2009.

-Two partner operated the restaurant without me.

-More than 6 months operation, we never recieved profit sharings, never quarterly meeting made.

-After complaint about profit sharing and quarterly meet, we had a meeting, got all income/expense reports.

-Three partners have a company debit card. I can access and saw many unknown transactions, mostly made by one partner who has 40% shares. the other partner also had some transactions.

-Debit cards transaction are their personal uses such as flight booking tickets, ski resort hotel rentals, cash withdrawals, family trips spendings (food and alcohol, photo studio, gas etc.), gas, doctor visit for his wife or kid, Costco and other market for their family, and many more.

-When I checked 6 months operation income (credit card and cash sales), only credit card sales deposited directly into bank account. Just few, like 2-3 times cash deposit made.

-That means cash sales are disapperaed. They stole cash from daily, weekly, monthly sales.

-At meeting, they gave me apology about personal uses of debit card transaction (They deposited some money what thet spent like ski resort rental about $3000).

-After meeting, they kept not shared any profit sharing at all.

- Then we found a bank deposit/withdrawl transaction $30000 deposit and withdrawl.

-We investgated what it is. A partner, who has 40% shares, borrowed $50,000.00 private loan from credit card merchant company. We met a guy who lends $50,000.00 to our partner. He showed promissory notes with our partner's signature and recieved our company check (about $64,000.00), He collects (automatic withrawl from our partner's personal account $400 daily= $8000 per month) money daily with 24.95% interestes.

-The partner borrowed $50000 for personal use, not our restaurant. But he used and wrote a company check ($64000) to private lender.

-After we know too many things made by two partner. We met several times to resolve this bad situation.

-Then 40% share holder / partner and I agreed to buy/sell our shares (30%).

-We agreed total $150,000.00. He paid me $70,000.00 with several payments. Then rest of balance $80000 can be paid monthly term payment ($3800 per month for 2 years term).

-Our lawyer prepared all promissory notes and lien..all paper works. He signed on promissory note.

-The ex partner did not make payment ontime so many times. Even we picked up checks and cash at restaurant.

-About CPA audit fees, I got many complaints from CPA. He tried to collect money from them many times. They never paied anything. So, I called ex-partner, left a voice mail and sent him a text. I will get money from bank (restaurant account), and pay audit fees. I access ATM, withdrew total $740. I added $10. I went to CPA office, met CPA, paid $750. then recieved a reciept.

-Then ex-partner stopped payment. He kept saying my ATM access/withdraw is illegal...illegal.

Because I am no longer existed in restaurant/company. He even saying "I can report to Police".

Then he started to ask lowering monthly payment from $3800 to about $2000.

-So, He and I had a meeting after his asking. I try to lowering monthly payments. BUT he brought new loan amount, $60000. Original loan is $80000. He tried to reconstructing $20000 difference.

He just got my illegal ATM withdraw and the other hand has negotiating new loan amount.

-I denied his proposal. Then he completely stopped payment. Until June 2011, he paid me about $14000 including interests.

-I hired a lawyer at Oct 2011. He sent him letter (to home address and restaurant address). Our letter means if not pay money, we will bring this case to lawsuit.

-At December, finally ex-partner's lawyer contacted our lawyer. They want a meeting with me and reconstructing loan amount and monthly payments. They even said. if we file lawsuit, he will file bankruptcy. Priority lien holders are State (taxes), ex-restaurant owners, landlord. After they collected we may have nothing or very small amount available.

** My question is "Is it possible to bring this case to "Criminal case"? like money stealing, misappropriation / embezzlement($50000 from private lender), no profit sharing, double amount salary (at company book, their salary is $2000 and $3000. But they got $4000 and $6000 per month without permission or talk with me.)

Please, contact me ASAP.

Thanks...


Asked on 12/12/11, 5:22 pm

2 Answer from Attorneys

Joe Dane Law Office of Joe Dane

I couldn't make it through your entire story and I'll tell you where you lost me (and probably every other attorney reading this) - you already have a lawyer. They know the case. You're paying them good money to answer your questions.

Can you Ike criminal charges? No. That is up to the prosecutor in the jurisdiction where these acts took place. I highly doubt any criminal charges would ever be filed in this matter - this seems like a civil business dispute.

But why not ask your lawyer this question?

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Answered on 12/12/11, 9:37 pm


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