Legal Question in Business Law in New York

Client won't pay!

I am an IT consultant. One of my

clients owes me nearly $40k for

work performed. We had a contract

that included payment information

but the client has not honored that

agreement. I recently found out

that another consultant had

''helped out'' the CEO of the LLC

(my client) by allowing her to use

her credit card to pay for a business

trip. After that, the CEO charged

other items to the credit card

(groceries and other incidentals).

Then the CEO opened another

credit card in that other

consultant's name without

permission. The client paid some to

the other consultant but stopped

paying and stopped responding to

e-mail or phone calls. As of right

now, this client does not answer e-

mails or phone calls from me, and I

have a collections agency working

to try to recover some of the

money.

The other consultant is going to

press criminal charges for the credit

card fraud. Would I be able to do

the same for some other type of

fraud, as it seems this client had no

money to pay me from the

beginning and seems to not be

willing to pay me now? If not, what

other alternatives do I have at this

point?


Asked on 5/11/09, 5:54 pm

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Client won't pay!

Based on your question, you would not have a criminal action against the CEO. However, it is for the District Attorney and not a civil litigator to make that decision.

You should be commencing an action against the company under the terms of the contract.

Mike.

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Answered on 5/11/09, 6:11 pm


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