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Irwin Law
Irwin Law, Attorney
Category: Legal
Satisfied Customers: 7081
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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I am the majority shareholder and managing member of a

Customer Question

Hello! I am the majority shareholder and managing member of a California LLC. I have a manager that is stealing money from the company, creating fraudulent documents, and illegally changing ownership in merchant processing and other accounts with vendors and service providers. This is happening because I am negotiating a buy-out deal for myself and the buyer is her brother. So, she is keenly aware of the situation, however nothing has changed in ownership yet. I have asked her multiple times to deposit the "cash drop" but she has not. She has about $10,000 in cash and has still not deposited it yet. I don't want to interfere with the sale of my shares because I am getting a good deal. However, I would like to be able to press criminal charges even after the sale goes through. Is this possible if I don't own my shares anymore?
Submitted: 8 months ago.
Category: Legal
Expert:  Irwin Law replied 8 months ago.

However, I would like to be able to press criminal charges even after the sale goes through. Is this possible if I don't own my shares anymore?

Since you are the majority shareholder and the managing member, you have absolute authority over this person, as I'm sure you understand. I understand the ticklish position that you were in with regard to the sale of the company to this person's brother. Pressing charges simply means going to the local police or prosecutor and presenting them with information that you feel constitutes the commission of a crime. You personally do not press charges, the state death, and that is only if the prosecuting officials feel that the facts warrant prosecution. There are many, many defenses to criminal charges based upon the relationship of parties, so don't be too surprised if a criminal prosecution never arises from the facts that you have presented. In the meantime, sure that you will protect yourself and your business from this individual.

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Customer: replied 8 months ago.
regardless of the sale of my shares and who owns them, I can still present the criminal offenses to law enforcement? Also, if there are monetary settlements arising from this case, should it go before a judge, would I be the recipient or would they go to the current owners of the business? At this time, the offenses are:1. FRAUD: I have submitting fraudulent forms to multiple vendors, including the POS system vendors, merchant processors, and accounting firm to change operating agreements and gain access to change the cash flow systems and accounts under Harvest Moon Group LLC.
2. IMPERSONATION: I have contacted multiple vendors, including the POS system vendors, merchant processors, and accounting firm, and have falsified myself as the owner and majority share holder of Harvest Moon Group LLC to change operating agreements and gain access to change the cash flow systems and accounts under Harvest Moon Group LLC.
3. EMBEZZLEMENT: I have kept, in my personal possession, all of the cash deposits from 6/13/16 through today, despite being asked multiple times by Daniel Massare, the majority shareholder and managing member of the Harvest Moon Group LLC, to deposit the funds into the back account.
4. BRIBERY: I use money from the daily operations of the store, that belongs to the Harvest Moon Group LLC, to hand out to employees to do my work or keep them quiet about something I have done, like said embezzlement but not limited to said date.
5. THEFT: I do not abide by the current rule under Harvest Moon Group LLC of a meal credit of $11 if working an 8-hour shift. I consistently and without hesitation, consume whatever food I would like to eat and drink, at anytime regardless of shift breaks. And I am aware of the $11 employee credit rule as well as the price of the items that I am consuming.
6. HARASSMENT: On multiple occasions, inside the store at 638 N. Robertson Blvd. 90069, I have yelled and threatened Daniel Massare that I will attempt to “shut this f**king place down”.
7. UNDUE STRESS AND HARDSHIP: My actions have caused multiple people within the organization, both employees and members of Harvest Moon Group LLC, undue stress and hardship in their professional careers and personal lives.
Customer: replied 8 months ago.
This is a statement that I am asking the perpetrator to sign, admitting fault and crime, else I am going to just present them to law enforcement on my own.
Expert:  Irwin Law replied 8 months ago.

There are no monetary settlements in a criminal case, and if you sell the business, you may not be able to recover any losses personally afterward. It seems to me that if you're looking for a settlement from that employee, you need to negotiated with her brother as part of the purchase price for the business. Anything else is so hideously complicated I doubt that anyone will understand it. Prosecuting officials are always the sharpest knives in the drawer, if you get my drift.

I hope that you will enter a positive rating for my assistance here by clicking on 3, 4, or 5. There is no additional cost to you. Thanks again for using JUST ANSWER.

Expert:  Irwin Law replied 8 months ago.

Hello again. Do you have a follow-up question? I am not an employee of Just Answer and I receive credit for assisting you based on your rating. Please enter a positive rating for my assistance here by clicking on 3, 4, or 5, for which there is no additional cost to you. Thanks again for using JUST ANSWER.

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