Legal Question in Employment Law in California
We are a small start up company, we raised about $700K. My CEO/Chairman of the Board has behaved in not only inappropriate but suspected criminal ways including writing a $50K bad check, creating 5 day and 30 day notes guaranteeing 100% finders fee, 100% return, and warrants in the company, then proceeds to not pay them back, but the money is gone. The account has a negative balance and we show withdrawals of over $150K by him that we suspect is unaccounted for, though the accountant, his friend, will not return calls or emails, etc. Am I able to suspend him until I can legally remove him from the board in 10 days?
2 Answers from Attorneys
I suggest you call the police first. Then file a civil complaint and go in on an emergency restraining order.
To protect yourself from suspicion, you'd better take immediate action in reporting theft and embezzlement to the police, and consider filing a civil suit to try to freeze his assets and try to recover the stolen money before it all disappears, if it hasn't already. Pray he hasn't already spent it all. Notify the banks and other financial institutions to freeze all access to company accounts. You can deal simultaneously with firing and removing him, which can be done immediately as well. If serious about doing all this with legal help, feel free to contact me.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
