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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I am an investor in a company(LLC) where my other partner is

Customer Question

I am an investor in a company(LLC) where my other partner is taking cash without funneling it through the bank. He is taking it from the customer and putting it in his pocket. We have a 55-45 split. Is this legal. What recourse do I have? We are in Texas
Submitted: 5 years ago.
Category: Business Law
Expert:  MShore Law replied 5 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Your parter is breaching his fiduciary duty to the company and could also be held liable for embezzlement. You can sue your partner on behalf of the company and/or in your personal regard as an owner of the company for his actions.
Customer: replied 5 years ago.
They claim they can take what they want as long as they report it at the end of the year. They said they have done it that way for 15 years. Is that true? As an investor I have no way to really know what my profits are if I don't know what's really coming in as far as profit if they take the cash. Can I involve the authorities and seek criminal charges for embezzling or theft?
Expert:  MShore Law replied 5 years ago.
Hello, no it is not true that they can take whatever they want so long as they report it at the end of the year. You should strongly consider retaining counsel to send your partner a cease and desist demand letter, and if that does not yield the desired change in behavior then file suit against him.

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