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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 9858
Experience:  30 years of corporate, litigation and international law
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From 2010 through 2013 I invested about $14000 in an online

Customer Question

From 2010 through 2013 I invested about $14000 in an online venture that was investing in tax lien properties etc. and made about $4300 in investment income. In 2013 I terminated my relationship with this company called Futuregen. Anyway few days ago I received a letter from an accounting firm claiming that the company I invested in was a fraudulent scheme and many investors lost their money and they are asking that I return the profit I made of the investment calling it false profits and that if I do not return the money they will pursue this in a court of law and collect the money. I did not know at the time that this was a scheme. Question is am I obligated by law to return the profit even though I had no knowledge of the fraudulent scheme if it was one. What are my legal rights and options. Any advice will be appreciated. Thanks
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.
Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for. A lot depends on the underlying facts as to whether you would be legally obligated to return your investment profits. Since it is not alleged that you were involved in any fraudulent scheme, the only way you would be legally obligated to return anything is if there is a receiver appointed for the company who can prove that what you received were not profits. The Bernie Madoff ponzi scheme is an example of that type of situation. I would not take any action until an actual court proceeding was initiated. I would certainly not send any money based on an accountant's letter. If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.
Customer: replied 1 year ago.

Attachment: 2015-07-02_200046_231460924-195758451.pdf

Thank you for your earlier response. I have attached the letter. It appears that this accounting firm is the receiver for this company. Just want to know what my options are, do I just go ahead and pay the money back. Thanks

Expert:  Richard - Bizlaw replied 1 year ago.
You would need to review the court's order to see on what basis there are any "false profits". Then you would need to see an analysis of how it was determined that what you received were false profits. If you agree with the receiver's analysis then you could return the $4,300. The return of the money might get you a $430 discount so you return 90% of that. Given the small amount involved, I do not think it cost effective to retain an attorney. However, whether you received false profits will depend on your review of the court order as well as the receiver analysis. If I have answered all your questions, please positively rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

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