Legal Question in Business Law in Illinois

Legal Rights?

There is a company that consisted of three partners. All of which invested equal money. So the company was divided equally.

Partner A handled and managed Sales

Partner B Managed the warehouse and Distribution

Partner C managed the Accounting

All of a sudden Partner C stopped showing up to work, and then notified Partner A and B that the company was going bankrupt and they need to close the doors, which was a surprise the partners A and B because the company was financially stable for the previous months and well as years.

Under closer investigation partners A and B found that partner C hadn’t paid the company’s mortgage for almost 10 months, which in turn caused the bank to foreclose on the company.

They started to research the incoming money further, and found numerous check that were sent to the company for payment of services were deposited into Partner C personal account.

Now Partner C is attempting to get a loan approved to purchase the foreclosed company from the bank.

Partners A and B have gone to the Police department and completed a report against partner C, and the police recommend giving the report to bank to prevent Partner C from purchasing the company.

Partner C isn’t even a US Citizen


Asked on 9/04/07, 2:24 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Legal Rights?

This is not a simple question that can be answered in a bulletin board forum. I assume you are in Cook county, if not the same applies in the county in which you live.

First hire a business attorney to file an injunction against the third partner. Second, contact the county prosecutor about filing criminal charges against the third partner.

There are other things which you need to do and your attorney will be able to advise you in these matters. This is not a situation that you should take lightly. You may lose your business based on the self-dealing of one of the partners.

As you stated there may also be an immigration issue for investigation.

Good luck!

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Answered on 9/04/07, 2:32 pm


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