Legal Question in Business Law in California

Possible Fraud

We have invested $30,500 into the purchase of ATM machines through a company. The most recent check we received had been returned for insufficient funds. There has been no prior incidents of this in the past 8 months we have been with them. We have tried contacting the point of contact person, and he has not responded to any of our phone calls or emails. We have not received any of our property information (serial numbers, specific locations, etc.). They (the company) are in California, and we are in Virginia. What are our legal rights as far as trying to collect on this bad debt? We have reason to believe that our own money that was invested was used to pay the previous check amounts.


Asked on 6/13/06, 7:16 pm

7 Answers from Attorneys
Frederick Choi Law Offices of Frederick H. Choi

Re: Possible Fraud

Most likely you have a claim, which can be made in California. However, before you proceed, you should be wary of the potential that the company has closed shop and that the judgment will be unenforceable. The good thing is that if the other side does not fight in court, you can get a judgment in a realtively quick and cost efficient manner.

The best thing to do is to consult with a CA attorney if you wish to proceed.

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Answered on 6/14/06, 11:55 am
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Possible Fraud

If it is not fraud, but poor management of course there is litigation. Cal me directly at 16192223504.

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Answered on 6/14/06, 5:40 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Possible Fraud

Are you sure they're still in business? You might notify the CA Attorney General's consumer affairs division if you suspect you've been defrauded. I take it, then, that you never received any information (or payment) from the ATMs? Sounds like it might be worth paying for a consultation with an attorney to review your options, and maybe hiring an investigator to find out if this company still exists.

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Answered on 6/13/06, 7:20 pm
Matthew Mickelson Law Offices of Matthew C. Mickelson

Re: Possible Fraud

You have the right to sue the company here in California, and, if successful, attempt to collect the money owed to you from them. You may have several theories of recovery, including breach of contract (if there is a contract), fraud and other general business claims.

I specialize in collection suits of this type; if the company is in Southern California, please feel free to contact me to discuss your case.

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Answered on 6/13/06, 7:23 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Possible Fraud

One tactic might be to sue them in Va. court (where you will have the home court advantage and they might not even show up) and then go after any assets you can find in Calif.

Member CA and VA bars

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Answered on 6/13/06, 9:15 pm
Terry A. Nelson Nelson & Lawless

Re: Possible Fraud

First try to determine if they are still in business, then determine who the officers and directors are from their corporate filings. If you have to sue, name those people as well as the company. You can sue in CA, and your documents probably require you do so, check them. If you can sue in VA, do it for your convenience. If you need help in Southern California courts, feel free to contact me.

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Answered on 6/13/06, 9:53 pm
Larry Rothman Larry Rothman & Associates

Re: Possible Fraud

Is this a franchise for ATM or a direct purchase? You probably have a claim, but we would need to review any documents you have. Please call me and I can answer any questions you might have.

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Answered on 6/14/06, 8:47 am


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