Legal Question in Criminal Law in Oregon
Is an unpaid loan punishable by jail time?
I dated a woman for over a year and in that time she loaned me $500 and then gave me $3000 to invest in the stock market. Due to personal reasons I used the $3000 to pay personal expenses and took the money of the market. When we broke up, she demanded all the money be returned with interest. We agreed to $4200, of which I've paid all but about $2200. She's now threatening me with a lawyer and seeking ''justice''. As I said, I have made payments to her and I intend on paying her off, it's just that I haven't been able to do it under her time table. What are her options and mine at this point?
1 Answer from Attorneys
Re: Is an unpaid loan punishable by jail time?
Your ex can take you to small claims court for the balance you still owe her, plus interest and court costs. But you may have a more serious problem on your hands.
You say your ex "gave" you the $3000 " to invest in the stock market". If she really "gave" it to you as a gift then she has no right to demand it back. My sense is that this isn't what happened, and that instead you agreed to invest the money on her behalf.
Failing to repay a loan is not a crime, but appropriating for yourself money that was entrusted to you to invest on behalf of another is. The amount of your loan was only $500. The additional $3000 was not a loan, and so what you did was quite different from failing to repay borrowed funds.
When you cashed out the investments you had made for your ex, you stole their value (which may have been much more than $3000 by then) from her. This probably amounted to embezzlement, though I would need more facts before I could be sure which crime you committed. But if you took you ex's assets for your own use you almost certainly committed a crime. If she is serious about trying to get you prosecuted you should get serious about finding a criminal defense lawyer.
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