Business Law

Ask a business lLawyer. Get business law questions answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

In Nov 2009 I transferred $6700 to a former contractor working…

Customer Question
In Nov 2009 I transferred...
In Nov 2009 I transferred $6700 to a former contractor working for my company (who also has a 1% stake in my company). He claims he never got the money so I transferred the money again. I then received my bank statement which showed that he had received the monies twice. I asked him about this and he assured me he only got the monies once. My bank (Bank of Ireland) then provided documentation from his bank (Bank of America) which proved he got 2 transactions 1. 27th of Nov and 2. 4th of Dec.

Michael then wrote an official letter to Bank of Ireland saying "I have reviewed my bank records extensively for Nov, Dec 2009 and Jan 2010. I show one international wire transfer for this time period which occurred on Nov 27th 2009."

Bank of Ireland still rejected his claims and he told me he went to his bank manager to get an official letter to refute his claims. He then said his bank manager had referred him to the Fraud Department and he had a meeting set up at 12pm on the 11th of June. On the 11th of June I got an email from him saying he had been admitted to hospital.

I was by now being sued by my bank because the issue had gone on so long and I was overdrawn. Michael then submitted his bank of America statements to me to 'prove' he didnt get the monies. His bank statements show a lodgement on the 4th of Dec and not the 27th of Nov he had previously claimed.

There was also other issues with his bank statements. 1. If you add the debits and credits - they don't add up correctly. 2. His closing balance at the top of the statements says "$6417" but the closing balance at the bottom says $2124. I brought these to a Bank of America branch and a bank manager confirmed that these documents were suspicious.

When I told Michael this he then denied everything and then rang me back an hour later saying he had visited his bank manager again and they had magically found the missing funds.

I am just wondering what action I can take against Michael. What is the severity of forging Bank Statements? I want to know what charges I can make against him i.e. attempt to withhold funds, lying, forging documents, delaying tactics, falsified claims of meetings?

It is important to be able to trust your shareholders - I clearly cannot trust him.

What steps can I take to get him removed from the company and for him to sell his shares back to me?

Thanks for your help
Submitted: 8 years ago.Category: Business Law
Show More
Show Less
Ask Your Own Business Law Question
Answered in 21 minutes by:
6/29/2010
Business Lawyer: Law Educator, Esq., Attorney replied 8 years ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 126,844
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Verified
First, you can file charges with the DA against him for theft by fraud, and that would be up to the DA"s discretion as to whether or not to pursue him criminally. This would be a grand theft and a felony punishable by up to 5 years in prison.

Second, you certainly have grounds to sue him for refund of the money that you overpaid him and you have your bank records to show that the money was sent and once you file suit you can serve a subpoena on Bank of America to get the true and correct account records from his account which will most likely show the transfers, since your bank is showing the money received by Bank of America.

Third, it is also a breach of fiduciary duty to the company and for this you can sue to remove him from the company and the court would order the buy out price.

These suits would need to be brought by the company and because there is a company involved you need an attorney to represent you in any legal matters by the rules of procedure since an owner cannot represent a company as it is a separate person for legal purposes and it would be the unauthorized practice of law.

I hope you found my answer helpful, please click on the GREEN ACCEPT button above for my answer (EVEN IF YOU ARE A SUBSCRIPTION MEMBER). This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

Please remember this is a dialog if you have follow up questions please use the REPLY button and ask. If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

There can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break.

PLEASE NOTE WELL: IF YOU CLICK OPT OUT I CANNOT REPLY TO YOUR FOLLOW UP QUESTIONS AND YOU MAY NEVER GET ANY REPLY OR IT WILL DELAY MY ABILITY TO REPLY TO YOU. Also, if you use RELIST, I MAY NOT SEE YOUR RESPONSE AND IT WILL DELAY YOUR REPLY.

You can always request me through my profile at http://www.justanswer.com/profile.aspx?PF=10285032&FID=39 or beginning your question with “For PaulMJD…”

YOU CAN ALSO GO TO http://www.justanswer.com/lp/19qy-PaulMJD and request me.



Law Educator, Esq.
Category: Business Law
Satisfied Customers: 126,844
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Verified
Law Educator, Esq. and 87 other Business Law Specialists are ready to help you
Ask your own question now
Customer reply replied 8 years ago
Hi Paul,

Thanks so much for your answer.

As he has now offered to repay the monies am I still able to prosecute him for theft?

Also, do you know what consequences would be brought against him for forging Bank Statements? Is it a felony?

Is there anything I can do about him claiming to have set up meetings/hospital visits etc.
Business Lawyer: Law Educator, Esq., Attorney replied 8 years ago
If he repays the money, then there would likely be no DA that would prosecute the theft or the falsifying of the documents. The falsifying the documents and meetings would be grounds to seek to remove him from the company and if he will not agree to a buyout of his share and your bylaws/operating agreement do not mention removal then you would have to proceed to court to remove him from the company and buy him out. I would not do anything with the buyout until you get repaid for what he took that he was not entitled to.
Ask Your Own Business Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a business lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 126,844
126,844 Satisfied Customers
Experience: All corporate law, including non-profits and charitable fraternal organizations.

Law Educator, Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

2,032 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

778 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

683 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

604 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
In California, can I close a partnership account. And if my
Second opinion] In California , can I close a partnership biz account. And if my partner opened up a dba with a bank using this companies name and I close it will his dba still be "good"?… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
I 't know what kind of attorney I need but here is my story.
I don't know what kind of attorney I need but here is my story. I bought a house in 1999 and went into a business 2003 and found out my partner was trying to pull out. I thought it was a year lease bu… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
126,844 satisfied customers
Hi there. I am from Ireland. A friend of mine set up a
Hi there. I am from Ireland. A friend of mine set up a whiskey business and asked me to be co-founder and come to America and set up the business here. I am on a B1 visa and he was applying for an E2 … read more
TexLaw
TexLaw
Attorney
Post-Doctoral Degree
4,347 satisfied customers
Can I subpoena a bank to show pertinent pre-death records from
Can I subpoena a bank to show pertinent pre-death records from a now-closed estate since the AiF used a forged power of attorney I believe to gain access to monies, since the estate is $.5M too low in… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
For the past 8 months Ive been performing on a month to month
For the past 8 months I've been performing on a month to month basis for a restaurant chain (Seasons 52) whose parent company is Darden Corp. Darden Corp owns Olive Garden, Red Lobster, Bahama Breeze,… read more
MDLaw
MDLaw
Attorney
Post-Doctoral Degree
358 satisfied customers
My brother invested $100,000 in a home with a girlfriend in
My brother invested $100,000 in a home with a girlfriend in Texas and is on the title with her. They broke up and she declared bankruptcy. The house is in foreclosure and will be auctioned on Nov. 11t… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
does anyone know the address of Homemortgage negotiator Home
does anyone know the address of Homemortgage negotiator Home addreess. The office located in Mt. clemens is apparently closed.… read more
kattorney
kattorney
attorney
Doctoral Degree
209 satisfied customers
I need to cite some case law in the Bahamas or the UK regarding
I need to cite some case law in the Bahamas or the UK regarding breach of confidentiality by a company director and breach of fiduciary responsibility by a company director.… read more
rvlaw
rvlaw
Judge
Juris Doctor
3,203 satisfied customers
Sir,I have a dispute with Merrill Lynch and will meet with
Sir,I have a dispute with Merrill Lynch and will meet with them next week. I had a 1% wrap fee which Merrill calls an (MLPA) account from 2004-2010. This format is non discressionary. Four unrated for… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,773 satisfied customers
Mr. P was a 50% Managing Member of an LLC with me. A business
Mr. P was a 50% Managing Member of an LLC with me. A business bank account was established at a regional branch of a national bank in Northeast OH. Mr. P was the sole signatory on the account as he li… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
1,611 satisfied customers
I am selling my corporation to a friend for $1 just to get
I am selling my corporation to a friend for $1 just to get it off my hands. Through LegalZoom, I have transferred all my stock and updated my bylaws. BUT now i need to transfer all my stock to him so … read more
Michael
Michael
Founding Member and Lead Attorney
Doctoral Degree
58 satisfied customers
I need to know the legal answer for the following question: Stanley
I need to know the legal answer for the following question: Stanley Green (“Mr Green”) is a sole trader dealing in property development and letting. He was also a director and 50% shareholder of Chead… read more
BartEsq
BartEsq
Attorney
Doctoral Degree
674 satisfied customers
My son incurred $408.00 of overdrafts with Wells Fargo in AZ
My son incurred $408.00 of overdrafts with Wells Fargo in AZ in 2007. It was an error that occured overnight and the bank was not willing to rectify the mistake. It seemed to me it would be a situatio… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
126,844 satisfied customers
HELLO, ok i am in a family owned business with 3 other brothers
HELLO, ok i am in a family owned business with 3 other brothers and our father my dad is retired and one of brothers was forced out 12yrs ago but still owns 10% of the company...my 2 older brothers ar… read more
MShore Law
MShore Law
Attorney
Doctoral Degree
1,233 satisfied customers
We were in a legal battle between a corp in TX who has a contract
We were in a legal battle between a corp in TX who has a contract with someone in CA who sued us for "copying" their product. They did this only because the corp in TX was a guy bought out by us, so t… read more
Anne_C
Anne_C
Attorney
Doctoral Degree
13 satisfied customers
I have an LLC company. one of the members resigned in writing
I have an LLC company. one of the members resigned in writing on Nov 1, 2009 I removed her from the bank accounts on Nov 2, 2009. She withdrew funds from our business account on Nov. 12, 2009. The ban… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
1,611 satisfied customers
I have an account with bank of America. I got involved in a
I have an account with bank of America. I got involved in a scam and now supposedly owe them $6500. in overdraft fees etc. When I deposited the checks they had me wait 5 days for the checks to clear. … read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
2,032 satisfied customers
I need to get some advise on prevailing wage. We have an employee
I need to get some advise on prevailing wage. We have an employee that we laid off Jan 4th 2009.… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
2,032 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x