Legal Question in Business Law in California

Small business investment deceit

How do I find an appropriate attorney for this case? I invested 25K in a tour business in 2006. The business was created in New York. The owner will not provide me with tax paperwork or any proof that my investment was used for the business. He will not respond to any of my queries and the business website is down. He is currently working for another tour company running the exact tour that he was advertising with ''our'' business. I believe he took my investment as a personal loan even though I have a promissary note stating that I would own part of the business upon receipt of the money. (This note also states that I can have my money back if corporate filing does not take place within 30 days. Corporate filing took place 60 days later.) I do have a stock certificate containing the business name, but two illegible signatures. I have a detailed chronology of events including copies of emails. I do not have reliable contact information for him at this time. I have been advised to hire a private investigator and an attorney. What kind of info do I need besides the promissary note, stock certificate, and chronology? Do you believe I can get my money back? Any advice is appreciated. Thank you.


Asked on 2/23/08, 9:12 pm

3 Answers from Attorneys
Alden Knisbacher knisbacher law offices

Re: Small business investment deceit

Whether you'll get your money back depends on whether you'd be able to collect on a judgment -- based on the facts you gave, you would likely be able to prove that he owes you the money -- it also sounds like he violated various provisions of the California corporations code (even though the bus. was in NY) You should file a complaint with the dept of corporations -- as for gettting your money back, you should first do a background check on him, to see what property he might own, and then it might be worth filing suit against him.

Read more
Answered on 2/24/08, 12:01 am
Terry A. Nelson Nelson & Lawless

Re: Small business investment deceit

Sue him and find out. If he did this 'business' solicitation in CA, then you should be able to sue him here. The attorney will need every thing you can provide. Your problem will be in finding any assets to collect against if you get a judgment. Feel free to contact me if serious about getting the legal help you'll need.

Read more
Answered on 2/25/08, 12:26 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Small business investment deceit

It is not clear from your question that California law would apply to this case or that California courts would have jurisdiction to hear it (those are two distinct questions even though they may sound like the same thing). I would need to know more details about how your agreement was formed and how the business was to operate before I could say whether this case would be subject to the law of California, New York or both. It is also quite possible that various federal laws would apply.

Read more
Answered on 2/24/08, 6:38 pm


Related Questions & Answers

More Business Law questions and answers in California