Legal Question in Investment Law in California

Re: investment scheme

This matter is unsuitable for California small claims court because there is a $5,000 ceiling on plaintiff demands. A $15,000 claim belongs in the limited jurisdiction side of the regular county court.

An assessment of whether and how to bring an action would include a review of the documents and other history of what's happened to see whether to treat it as a criminal or civil matter, and if the latter, whether it is a breach of contract, fraud (tort) or both. The characterization of the case will dictate whether it will be handled by the district attorney or you need a private lawyer, and probably whether attorneys' fees can be recovered from the other side if/when you prevail in court.

An attorney should also assist you in evaluating whether the other two parties can be found and haled into court, and whether they have any assets that can be tapped if you win.

If the matter is treated as criminal, it is the "People" and not the victim who bring the prosecution, and if the "People" win, the result is a jail/prison/probation sentence and/or a fine. In addition, the court can order restitution or a 'restitution fine' which could result in your getting some of your money back, but don't bet on it.

My personal opinion is that you are the victim of either (1) an out-and-out scam in which the other two had no intention of repaying you anything, or (2) a careless and unethical financial-markets gamble taken by the other two using your money, with some intent of sharing the rewards but indifference to the securities laws or your best interests. It is easy to jump to the conclusion that it is (1), but about a year ago I assisted a friend who had made a similar "investment" in getting her $50K investment returned under threat of prosecution......so there is hope.

If you are anywhere near Sonoma County (where I practice) I would be willing to give you a free consultation. Otherwise, I suggest you contact the white collar crimes unit of your local police or sheriff's office, and also a local attorney or two to discuss their willingness to assist you and their fees for doing so.