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Are embezzlement and tax fraud the correct charges?
Anonymous4 views3 answers
Started trucking business with partner's uncle. We ran under his authority so everything was under his name - We had no access to accounts. We used a factoring company that he told us charged 10%. Three years later, we open our own authority, come to find out factoring company charges, on average, 3%. My partner's uncle has been keeping the rest of the money which now totals around $100k. Never was there written or verbal consent in which we agree he keep that money. Also, in order for us to believe him he told us to expense that money in the factoring account, so he is not only taking the money, but he's also not paying taxes on it.
It does not really matter the name of the causes of action because this is the opposite of a do it yourself project. Create a summary of no more than two pages regarding the background and the "facts." Sleep on it, re-read and edit it and then print it. Then go through every email and document you have an pick out the 5 - 10 best pieces of evidence you think you have of the agreement and the misrepresentation(s). Print them and then, with the summary, scan as a single document. That's what you should send when you begin interviewing attorneys. Attorneys will then look at you as an organized person and good witness. Then the attorney will want to interview you and see "everything" (i.e. more than the 5 - 10 documents/emails). Good luck.
Is this a 2 person partnership? 3 person? An LLC? A corporation? Are there governing documents that have been breahed?
You've got some breach of fiduciary issues, at a minimum, but no one on can do anything but steer you toward a business litigator in your area.
Having properly legally formed and operated the company to begin with likely would have prevented this from happening in the first place. Learn from your mistake. Get off the general legal forum and into the offices of both an attorney and CPA to have the details of your situation reviewed.
