Legal Question in Business Law in Massachusetts

Corp

5 yrs ago I became the Pres.of a Mortgage Broker Corp. The reason was because of my Mortgage experience I could apply for a Licence. Prev. the Co. was a net branch and wanted own Lic. I never handled any of the financials. My name was on the checking account along with the original owner of the Net Branch. I was listed as sole owner with the understanding that the current owner could purchase 75% of the stock back within a 10 year period.My compensation was 5% of the gross profit.The prev.owner decided to close down the business and I was left with all the outstanding debt.along with all the obligations that go with the closing of a Corp. The last month in Business the other person emptied the checing account saying it was paying some of his expense. He now claims he never was on any of the paperwork as the ceo and has no obligation I have e-mails and other information that prove otherwise. Do I have any options.


Asked on 6/17/08, 11:28 am

1 Answer from Attorneys

Re: Corp

Yes, He has engaged in a deceptive business practice and his taking of funds will be required by a Trustee in Bankruptcy to repay the amount he took.

I would suggest you contact a bankruptcy attorney so as to wipe out the debt.

If you are afraid that will destroy your ability to continue to have a license as a business broker, then you need to see take all the information you have to an attorney to review and see if you can recover the money from the net company and its owner.

Please feel free to contact me if you have additional questions.

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Answered on 6/17/08, 12:22 pm


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