Legal Question in Civil Litigation in California

being sued.. help?

My wife is being sued because a former employer ended up being a huge ponzi scam. She had no knowledge of the scam while working there and quit for health reasons before any problems arose from the scam. She even had her parents invest with the company. What should she do?

Asked on 12/05/08, 1:15 pm

6 Answers from Attorneys

Bryan C. Becker Your Lawyer for Life.

Re: being sued.. help?

You will need to speak with an attorney as soon as possible. Technically, as an employee, the company she worked for is required to indemnify and defend her. That being said, given that this may have been an illegitimate business and the complicating factor of fraud, your wife may be stuck defending herself and then pursuing the principals of the company for her costs. As you can see, you will need to speak with an attorney and provide all of the background to get an accurate opinion of your options. I would be happy to speak with you further, I frequently litigate in Riverside County. Keep in mind your wife has 30 days to file an answer.

Yours truly,



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Answered on 12/05/08, 1:36 pm
Larry Rothman Larry Rothman & Associates

Re: being sued.. help?

Even if there is no basis for your wife being sued, a response has to filed to the complaint or a default judgment could be entered against her. Please contact our office if you have any other questions.

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Answered on 12/05/08, 1:56 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: being sued.. help?

A recent appellate court decision held that early "investors" in a Ponzi scheme, the ones who got their money back or more, are liable to, and have to share the losses of, later "investors" who lost money. Some people were hit with lawsuits out of the blue years after their participation in the scheme ended. All I can recommend is that you get competent counsel.

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Answered on 12/05/08, 1:59 pm
Terry A. Nelson Nelson & Lawless

Re: being sued.. help?

Demand the company provide and pay for an attorney and defense for her. If they don't then you'll have to hire an attorney yourselves, to defend and also and counter sue the company for indemnity. She may have grounds for various motions to get out of the litigation; talk with the attorney. Feel free to contact me if you need to hire counsel.

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Answered on 12/05/08, 2:19 pm
Daniel Bakondi The Law Office of Daniel Bakondi

Re: being sued.. help?

What you need to realize is that she (and you) need an attorney who is experienced in these matters. You must hire an attorney now because you have to be sure there is someone looking out for your interests, not the businesses nor others'. It is likely that other people sued will scramble and flee, leave you holding the bag. Any statement that you make, even innocent sounding ones, might be used against you. I have experience in such matters, especially from the plaintiffs' side, going after people who assisted in such schemes. I am familiar with and have multiple times litigated laws this action might be brought under with millions of dollars at stake. Please contact me for a free consult.

Daniel Bakondi, Esq.


No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

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Answered on 12/05/08, 3:50 pm
Phillip Lemmons, Esq. Phillip Lemmons APC, Attorneys at Law

Re: being sued.. help?

Hire an attorney.

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Answered on 12/06/08, 12:10 am

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