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Our business has been under court ordered receivership

Our business has been under court ordered receivership for six months because of a partnership dispute. The goal is appraise the true value of the business and then force our partner to buy or sell the business to or from us. It's a famous "mom & pop" in New York City. The problem is with the General Manager that is operating the restaurant. He is a "friend" of the receiver. We and our partner have not drawn a salary since January in an effort to pay up back taxes so that we could renew the lease that is expiring in five months! The GM is having unnecessary repairs done by his "friends", inflating the bills and paying them CASH! He bought three of the same calculators for $70.00 each,didn't like them and threw them away? He has installed $2300,00 worth of Apple computer system, purchased from a "friend" which itemized through Apple should have cost $18,000.00 and presented an invoice with the name of a company that was not on the internet or phone directory. I called and it was a furniture company. We discovered that he created the invoice on his computer! He purchased four thousand dollars worth of used cameras from another "friend" that are not necessary and do not work half the time, probably with another bogus invoice. I did an online background check on him with three different companies and he was arrested for selling CDS, resisting arrest four times back in the nineties. Who is responsible for bonding this guy? I have asked my lawyers several times for a copy of it and they keep "forgetting" to get it for me. He brags about doing drugs and drinking, sexually harassed a waitress and then gave her a $100.00 check from the corp. for doing extra work. (she went to staples). She and all of our staff HATE this foul mouthed loser. We complained to the judge, but all she wants to know is that the business is improving. She told us to speak to the receiver. The receiver and GM are friends. They frequent the same bar. Oh, did I mention that he hired a "friends" son to help teach the new computer system and one of the staff caught him inhaling "whippet" in our office! Luckily, he had his cell phone in his hand and video it. We don't know what to do. The judge is a friend of the receiver, the receiver a friend of the GM whacko. Our staff is keeping us informed and our son was the GM so he is keeping an eye out for us, or should I say, he is watching this derelict destroy our business and rob us blind. He has alienated our life time venders, switched to cheap products and brought in a bum off the streets and paid him eighty dollars today to take pictures off the wall so that a painter could prep and paint the office. We have our own maintenance staff available. We are Never going to get a profit sharing or pay check with the way this guy is wasting money. Do you think we should hire a private detective to prove to a judge that this man is an incompetent, drug using, thief. I know I have to prove this before I say it in a court. My lawyers are basically saying that we have to "suck this up". Easy for them to say, they are not going bankrupt with legal fees and living on SS. There son is also not watching some loser rob and squander their parents livelihood blind. Help us Please!

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Irwin Law

Juris Doctor JD

 
8,060 satisfied customers
Please direct question ONLY to: GWarren Customer Advocate

Please direct question ONLY to: ***** ***** Advocate (JustAnswer member attorney)My question is similar to one you answered for someone else.I am one of two partners in a LLC founded in 2014 and that converted to a Sub-S for tax filing purposes last year.My partners separate corporation provided contract labor to our LLC and we had a signed agreement as to amount. He later claimed that he should recoup a substantially higher amount which he said he was out-of-pocket for for higher salaries he said he actually paid to the two staffers because they put in significantly more time than anticipated. For several reasons, while we agreed to a provisional amount to be further negotiated and agreed upon, that agreement has not yet been reached due to various points of disagreement over the amounts he actually paid out (he refused to permit our CPA to audit his payroll to confirm amount owed since it was posed as "recoupment") and because I discovered that he had diverted at least three opportunities from the LLC to his separate business.Because of the loss of our major client who did not renew their annual contract as of a few weeks ago, he began to be concerned that the business might fail and he might never collect and began pushing hard for the "debt" (payables) to be paid immediately out of what was left in the bank and the last of the incoming A/R. Because of my findings above and his failure to provide documents that he had agreed to provide to me in a phone consult with myself and an attorney (who unfortunately is currently out of the country), and other issues, my response to his proposals to collect on the receivable was that he needed to provide the promised documentation and to account for the opportunities that were diverted first which he justified regarding the first two and denied in the last instance.I just discovered that on this last Friday he cleaned out most of the cash in the bank (thousands of dollars) which will make it impossible to meet our payroll tax obligations or to fund officer salaries (his and mine). He is an authorized signer on the bank account but I handle the banking, A/P, A/R and payroll as Treasurer. I not only did not authorize this transaction but I was clear, and in writing several times, what the requirements were that he needed to meet in order for a decision to be made on a settlement amount of the payable.What are possible causes of action? If this makes it impossible for the business to continue, or for me to continue in the business, are these damages?

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J. Warren

Attorney

Doctoral Degree

 
3,858 satisfied customers
What's the difference between LP, LLC and inc?

What's the difference between LP, LLC and inc?

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Loren

Juris Doctor

 
34,606 satisfied customers
I have a corporation with a partner, we flip homes, the next

I have a corporation with a partner, we flip homes, the next home I am doing own my own but still want to use the same corporation, what is the best way to use the same corp. without my partners involvement? its just this one house, can he suspend his partnership temporarily? or can we just prepare some type of indemnification agreement? I dont want to form another corp. and get all new accounts etc. any suggestions?

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RayAnswers

Lawyer

Doctoral Degree

 
33,892 satisfied customers
I'm looking to go into business with a person who may be

I'm looking to go into business with a person who may be on illegal drugs or if he is clean currently, may revert to using again. He is still on parole but has created a business using an attorney and handles his payroll through a CPA. He wants a business partner and a cash investment to cover the purchase of a property. If we agree to split assets, profits, and business ownership 50/50, and he gets arrested for reverting to drugs at some future point, would I retain ownership of the property and assets? Would I at least retain 50% ownership of everything. My fear is the government could just come and claim everything and leave me with nothing because of his choices.

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Ely

Counselor at Law

Juris Doctor

 
62,078 satisfied customers
I am a medical professional trying to setup an S-corp

I am a medical professional trying to setup an S-corp for my medical practice as well as a multimedia medical website that I run. My understanding is that a PC is required because of my practice, but I also wanted to see the best way to to structure the website into the corporation to maximize tax benefits and minimize liability.

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Richard - Bizlaw

Juris Doctor

 
9,412 satisfied customers
What contract should I use my partner sign when he is

what contract should I use for having my partner sign when he is leaving the LLC partnership and I don't want him to pursue any monies against myself or the LLC when he will be paid a set agreed amount.

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Law Educator, Esq.

Attorney At Law

Doctoral Degree

 
104,218 satisfied customers
I'm trying to get out of a partnership franchise that I

I'm trying to get out of a partnership for a franchise that I got into about year ago. The franchisees have had this business now 4 years. They don't have a problem with me exiting the company since I'm not asking for my money back. He sent me a letter that is a little over one page to sign to allow me to exit. However, the franchisors will be sending me a letter to sign but they won't send it to me to sign until I have signed the one with the franchisees. I'm not sure I feel comfortable with that since the letter that I originally signed with the franchisor's is a guarantor letter and I'm liable for franchise fees if he defaults although I don't think that will happen since he has a loan and the franchise is breaking even. The franchise term is for 5 years and the franchisees are coming up on 4 years of owning it. I called the attorney for the franchise and I explained to her that I would like to sign both letters at once so I can make sure everything coincides with one another and all will be good. Do you think I should sign this letter and wait for the franchisors to send me a letter not knowing what their letter will entail?

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Samuel II

Attorney

Doctoral Degree

 
31,238 satisfied customers
I am one of the owners of a very small C-corp. I have a

I am one of the owners of a very small C-corp. I have a business partner and we each own 50% of the stock. Currently the partnership is rocky and we may sell or I may have to move to end the partnership in some other way. Basically because of his behaviors I need to get him out of the running of the business. He will not sell his shares and also will not buy mine even though he could easily afford them.Currently I'm president of the board and he is secretary. I'm the CEO and he is the CFO. He wants to change that to where I am president of the board and he is both secretary and treasurer. Would that give him any more rights to take actions he is not currently allowed? Is it anything I should care about?Also as the CEO do I have the right to fire him if it comes to that?

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Asad Rahman

Attorney

J.D.

 
2,270 satisfied customers
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