Legal Question in Business Law in South Carolina

small business investment fraud

My husband invested $23,000 in a small business. After 4 months the business went under. After inquiring about the financial transactions of this business my husband was told that there was no paperwork or books for this business. His investment went into the individual's personal bank account. There is no way for us to track the money. There was an initial contract written between this person and my husband as to his investment on receipt of the money. After the business went under there was a second contract signed by the individual which was a acknowledgement of debt by the individual. At this time he refuses to make the agreed payments that he acknowledged. This person knowly took this money and did not put any of it into a business account and misrepresented his intentions for the use of it. Are there any laws that can aid use? Can this person be prosecuted for fraud?


Asked on 10/28/02, 5:10 pm

1 Answer from Attorneys
Otto Ferrene, jr. Ferrene & Associates, PA

Re: small business investment fraud

You should call law enforcement in the location of the business and file an incident report with them. They will investigate the incident and give their opinion as to the breach of any law. You can then use the resulting investigation report for the springboard for a possible civil suit to recover your money. After you have a copy of the incident report from law enforcement, then take it to a plaintiff's attorney. I am sure he/she will be happy to explain your available options. I assume you want the money back.

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Answered on 10/28/02, 6:04 pm


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