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Dave Kennett
Dave Kennett, Attorney
Category: Business Law
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Experience:  25 years practicing law
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Question about affidavit I am in a buisness dispute. I purchased

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Question about affidavit

I am in a buisness dispute. I purchased a business a year and a half ago. I need to prove fraudulent statement a business seller made on earning.

In order to prove the fraud, the employee(s) who worked at the time need to be witness.
I heard the employee(s) need to sign an affidavit. My question is 1)whether a law obeying citizen has the obligation to honestly sign the affidavit. What if they refuse for fear of retalization(from previous owner).2) Are there standard affidavit to use?

Thanks
Submitted: 4 years ago.
Category: Business Law
Expert:  Dave Kennett replied 4 years ago.

-Could you explain your situation a little more?
Is there a lawsuit involved?

Is the ex employee supposed to be a witness in the case?

Who wants an affidavit?

Customer: replied 4 years ago.

I am the owner of a small healthcare business. The previous owner sold business one and a half years ago. The seller is a retired dentist and he did not practice at the location. But he used his license to bill government on behalf of another doctor who is not eligible to bill the government.

 

In summary, about half of earning of the business was through fale medical claim. I like to charge the previous owner make false business statement.

 

In order to prove this, I need to have someone to witness that the previous owner did not practice at the site. Three employees remain working here after the business was sold. They are the best person(s) to sign affidavit- the previous owner did not practice. The dispute is not in lawsuit yet. But I plan to do so after I obtain the solid proof. Since there is arbitration clause in the business purchase agreement, the solution may have to go through arbitration. In any case, getting witness is a key I think.

 

Of course the buisness broker who brokaged the sale had marketed the business to me as absentee owner. He is also be able to prove this.

Expert:  Dave Kennett replied 4 years ago.

-Could you explain your situation a little more?
I'm still not certain who wants an affidavit?

Are you talking about filing criminal charges or a civil suit?

Have you lost money as a result of all of this or do you just want to expose the former owner to a crime?

Customer: replied 4 years ago.

Thanks for the patient.

 

I overpaid the business because of inflated earning made the seller. I am seeking compensation. I lost money.

 

It is a civil suit on breach of business purchasing agreement although it also involved healthcare fraud by the seller. I need to prove that the prevous business's earning was obtained through false billing (to govenment).

 

Through billing, the previous owner claimed he personally provided healthcare service (to the government healthcare department). But he actually did not practice. The work was done by a different person who did not have appropriate license. I need someone to tell the court/artitrator that the seller did not practice.

 

 

Expert:  Dave Kennett replied 4 years ago.
Dear pr canada - What you need to do is file your suit and state your allegations. If you need one of the employees as a witness they will have to testify since an affidavit would not be accepted as evidence in a trial. At this point all you need to do is make sure you have the cooperation of the employee and that they would be willing to testify at a trial if it comes to that. Initially you do not need any affidavits in order to file the suit. If the inflated earnings were directly related to the absentee ownership then you would have to show that the owner did not practice at that location. I'm not certain whether the false claims to the government reflect less earnings or simply fraud on the government so it may or may not be relevant to your case. The issue is whether the earnings reported for the business were accurate or not. In any event, no affidavits would be need simply to file the suit.
Customer: replied 4 years ago.

Dave,

Thanks. I may have to shut down the business soon. My concern is that the employees may be not willing to coorporate or have no interest to testify in court after the shut down of the business.

Yes the absentee owner does have directly impact on the business earning. After the business was sold, the dentist(Dr.C) who did the actual work has to quit because he himself did not have the appropriate permit to treat patients in government healthcare program. The previous owner(Dr. F), a retired dentist had been using his permit to bill the government for the work did by Dr. C.

 

James

 

no longer use his license to bill the government for the work did by another doctor.

Expert:  Dave Kennett replied 4 years ago.
You can get an affidavit if you choose and the employee is willing to sign but if there is a trial you would need the employee to testify in person so I'm not certain the affidavit would be of any use other than to attach to your complaint. You can always subpoena the employee to testify. If the issue is whether the prior owner worked there it seems it would be rather easy to prove in some way or another.
Customer: replied 4 years ago.

Dave,

Does "subpoena the employee to testify" means they have the duty or legal obligation to testify (required by law)? That is I like to confirm.

 

Thanks James

Expert:  Dave Kennett replied 4 years ago.
If they are subpoenaed they have to appear. Unless they take the Fifth Amendment against self incrimination for fear of a criminal prosecution they would have to testify.
Dave Kennett and 2 other Business Law Specialists are ready to help you
Customer: replied 4 years ago.

Dear David Kennett,

 

I would like to do a final consultation with you about this before making final decision on launch lawsuit or not. I will post my question tomorrow.

 

Thanks

 

James

Expert:  Dave Kennett replied 4 years ago.
No problem. Just remember that I am not permitted to represent you as a client and my information is general and not specific legal advice on a particular case. Let me know what other questions you have.

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