Legal Question in Civil Litigation in California
A company who's sole business is recruiting/placement services borrowed a substantial amount of money from me for the purpose of making hard-money loans. I've found they are not licensed or sanctioned to do this type of activity. I've made many attempts to get my money back; the contract we both signed specifies that I would receive back the principal, plus 25% on May 30, 2009; and that if they did not meet this stipulation, I would accrue further interest and penalties until paid.
I haven't received my investment money back to date, let alone the interest and penalties. Does this qualify as a criminal case? Do I have any remedy for relief in the courts? The representative of the company says they've BK'd, but I was never notified as a creditor, nor was he able to give me a case number from bankruptcy court. I think I've been swindled!! Do I have a leg to stand on here?
6 Answers from Attorneys
Going after such money that is clearly owed, but the challenge is in collecting, can be tricky. I have experience in these matters. I need to look at your agreement, and see if there is a way to hold the people who borrowed money from you personally liable. I may have an idea based on your statements. I also have a good investigator. You may have a shot if you act quickly. Call me for a free consultation.
Best,
Daniel Bakondi
415-450-0424
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This should teach you not to make unsecured loans to people who can't get them from the bank.
You will have to sue the person who signed the contract. Remember there is no such thing under the law as a "company" or a "business." There are only sole proprietorships, partnerships, and corporations. You could call the attorney who reviewed or drafted the contract on your behalf, but I suspect this attorney doesn't exist. I would be happy to look up the bankruptcy court records for this individual or corporation and to look at the contract. If they really are bankrupt, you could be out of luck. This is not a criminal case. If you can make out a case for fraud, you could sue in the bankruptcy court (if indeed they are BK) to have the debt declared nondischargeable..Do not delay, there are legal time limits; and they might not yet have filed for BK.
Obviously, there are ways in which you can attempt to collect the amount that is due and owing to you. As previously mentioned, it would be advantageous to seek the amount due from the business (i.e. corporation or alike) and the individuals. It is hard to determine whether this would be a criminal act on the facts you have provided in your question. The fact that this business was improperly loaning money probably would not benefit you directly. Although you did not mention more specific terms of your loan, the 25% interest rate seems a little high. If you are a legitimate creditor and they did file for bankruptcy you should have been notified. Feel free to give me a call, I have an office in Orange.
My gut tells me you got taken by a ponzi scheme. It just has that "feel" to it. In addition to retaining counsel to pursue recovery from the business and individuals, you should at least bring your situtation to the attention of the police and see what they say. And if you are "shopping around" for an attorney, please give me a call. I have two somewhat similar cases already pending in Orange County and maintain office facilities in Carlsbad. I offer free initial consultations, and take these kinds of cases on a contingency or hybrid hourly/contingency basis.
As with all such disputes, you can either resolve it among yourselves, or you can sue if it is worth doing so. That depends upon whether the case has merit [likelihood of winning and the other side found liable], value [substantial provable and legally recoverable damages] and collect-ability [defendant with sufficient insurance coverage or available assets to collect against]. If they've actually filed BK without putting you on the creditor list, you can still pursue your case, and you should immediately file a Creditor's claim including fraud and non-dischargeability. If this is a scam, as it smells, you may have considerable trouble finding the company or individuals to sue, and finding assets to collect against if you win. Feel free to contact me if serious about getting counsel. I've been doing these cases for over 35 years. You should also try to file criminal charges with the local police if you think it was scam and fraud.
You have received some good advice from the other attorneys thus far; I would add that the most important thing in these cases is time. The longer you wait, the harder it will be to recover your money. Do not delay, speak with a few attorneys this week and make your decision to move forward or not. Be careful not to throw good money after bad, make sure the attorney has a good theory of recovery or is willing to provide you cost certainty from the beginning. If you would like to give me a call or email, I would be happy to review the details with you and provide you with my advice.
Regards,
Bryan Becker
Becker Attorneys
www.becker-attorneys.com
877.201.8728
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