Legal Question in Business Law in Virginia

An ex-employee bought my business. In 2023 he mowed a balance of $35,000. He used a shady loan company to take out a loan but used my federal ID number instead if his new Federal ID number. The loan company is trying to prove my

Company is d/b/a his company when they are two separate entities. They garnished my company's account without notice to me until the bank notified me of the garnishment , once the money has beenheld by the court.

So my question is:" is there a risk of the circuit judge asking question about ownership of the original business, papers when it was sold, etc. Or can I just prove he fraudulently used my Fed ID and my current company is not associated with my previous business which he now owns. He admitted in a txt that this was all in him.


Asked on 3/06/25, 8:27 pm

1 Answer from Attorneys
Frank Natoli Natoli-Legal, LLC

This may be a bit complex to address here. But I assume it was an asset purchase and you retained the EIN and the underlying entity remined intact. All you should need to show is that in fact you entered into an asset purchase agreement and that the new owner misused your EIN. If the court ordered a garnishment then it would seem that you did not enter an appearance and took a default judgement.

Perhaps you should consult a local lawyer and see if you can set that aside and sue to recover any out of pocket losses.

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Answered on 3/07/25, 7:35 am


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