New York | Business Law
Legal Question
Partnership Split
In July 2007, my boss left a partnership offering to buy out the business. He is a financial advisor and was solely responsible for all the clients he serviced. The majority partner acted very poorly, telling clients my boss took money from the business and made up child like stories to clients telling them things that were not true (defamation). There was no written contract, ever. My boss worked with this guy for about 5 years. The majority partner owns a CPA firm and fed some of the business, which is why my boss wants to settle fairly. At this point, it's been over a year and the former partner continues to compete to get back the clients, and my boss made an offer in December 2007, which was never replied to. The former majority partner has neglected to pay either of our Simple IRA employer contributions and has not sent my boss his K1 for 2007 making it impossible to file by the 10/15 deadline. If he does get a K1 (unlikely), it will most likely not be reflective of actual payments to my boss in 2007 as it will most likely be ''padded'' to show payments former partner feels my boss took by leaving with the clients. My bosses attorney says, pay him zero at this point. Any feedback on legal repercussions on that?
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