Legal Question in Business Law in Arizona

Extortion in Arizona

I need to know if this is extortion under Arizona law. I am a minority member of an LLC (the principal owner and I had a falling out so I no longer work for the company but retained my ownership interest). Over a year after I had left the company I received a letter from an attorney representing the LLC stating they had been furnished documentary evidence of fraudulent misappropriation of funds by me and that I may have repeatedly breached my fiduciary duties. Then, it says, 'my client is willing to release you from all claims that they may have against you in connection with your mismanagement of the LLC if you will voluntarily relinquish your ownership interest'. The accusations are NOT true, but nevertheless I am being accused.

Need of advice.


Asked on 6/21/09, 2:41 pm

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: Extortion in Arizona

Without more facts, it is not possible to answer your question, however, it could be extortion. If there is no truth to the accusation, then you could sue and you could complain to the bar association against the lawyer. It would probably be best to first demand to see the proof of misappropriation of funds and the other allegations, and then, take action against them.

Once you get their "evidence" you should retain an attorney to analize the situation and advise you.

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Answered on 6/22/09, 1:28 am


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