Legal Question in Business Law in Pennsylvania

recovering a stolen investment

I invested with a 'friend' into a bar named ''grape street pub'' I was recieving 8% of the net revenue each month. I found out that my 'friend' used this money for basically anything but the business. Ie: new flooring in his residence and other things. A forensic accountant could easily prove this. Of course he stated the business was going bankrupt and he would not be able to continue giving me my monthly take home. I know for a fact that he was skimming cash and hiding revenue from the IRS. At this time he brought on a new investor who helped my 'friend' open a new bar, now named ''grape street philadelphia'' around the corner from the first place. I have not been able now to get any payback of my initial 50k investment an I have receieved no money for 2years. He has now stopped returning calls or emails. I initially was trying to save our relationship; however, now I see he and his wife both driving expensive cars, owning expensive homes, etc.. He did this to several other people who invested. What kind of legal action would you suggest if any?

Thankyou

Dr. DeGreen


Asked on 8/28/05, 12:57 pm

1 Answer from Attorneys
Mark Johns Mark Johns, Esquire

Re: recovering a stolen investment

If you have a written loan agreement it should spell out whether or not under the terms of the loan your friend can be held personally liable. If the loan terms only allow pursuit of the corporation you may have an action against your friend personally for conversion, fraud or another similar tort. You should consult with an attorney to discuss your potential claims in further detail. I offer free consultations.

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Answered on 8/28/05, 2:32 pm


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