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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118201
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I was a customer/rep for a multi-level marketing company. About

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I was a customer/rep for a multi-level marketing company. About 30 days after investing my money with the company and signing up 2 more custimers/reps, I learned that the company's owner was a scam artist. I filed a complaint with the attorney generals office and offered to testify against the owner with the pg county states attorneys office. I informed the people I had signed up of who they should contact to file a complaint as well.
now, one of the people I signed up as a customer/rep is trying to sue me in a civil case claiming she made her investment with me. I only signed her up as a rep on her contract which was with the company. I loss money as well. The company and owner are under investigation by the feds and I have documentation from the states attorney and attorney general office. Can I be held liable and asked to repay the money this person invested with this company?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
If you did not take the money and were a vicXXXXX XXXXXke her, then you have a defense to her claims. In order to succeed in suing you, she would have to prove you knew that this was a fraud and you participated in taking the money and somehow benefited from that money, which is a tough case to make. However, you need to not only deny her suit, you have to file a third party action naming the original company as the liable party. A third party action says essentially that if you are found liable to the plaintiff they are liable to you for that damage.

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Customer: replied 5 years ago.
She is claimimg that she gave me her money instead of the company, even though the contract she signed has the company's name on it and she was given a receipt from one of the company's managers. I'm assuming she doesn't plan to present the receipt as it would prove she is lying. I did not file a claim with the court against the owner as the feds have not been able to locate him. She is suing me because she can't sue the company and get money because the owner skipped town. She is claiming I took her $4000 and skipped town because I moved to NC. I purchased my home in NC in 2008. This scam happened in late 2009. I got married in late 2009 and moved to my NC home. She is suing me for $11000...the $8000 she was expecting to make from investing with the company plus $3000 in interest. Is it likely that a judge could actually rule in her favor without proof that I took her money.
Expert:  Law Educator, Esq. replied 5 years ago.
You will have to answer the suit and deny it and file the 3rd party claim. She will have to prove that the money went to you, which you can prove you did not take the money. She bears the burden of proving she gave you the money.
Customer: replied 5 years ago.
How can I prove I did not take the money without her receipt? It's my word against hers, Also, how do I file the 3rd party claim? I no longer live in MD, the owner can't be served as he is on the run, and I can't afford to hire an attorney.
Expert:  Law Educator, Esq. replied 5 years ago.
A third party claim would involve you filing a petition and trying to serve a summons on the responsible party, but if he is on the run then this will be a problem for you and where the attorney would be needed to try to file service by publication which gets complicated. If you did not take the money from her, she is going to have to prove payment and it would show who the payment went to and if she cannot do so, then the court is going to have to make a credibility assessment between your testimony and hers.
Customer: replied 5 years ago.
Is the third party claim necessary with the documentation from the attorney general and states attorney and my proof of correspondence and cooperation with each? She can not provide proof of payment because she gave the company cash instead of an money order as I did. However, there was a receipt but I imagine she lost it as she did her contract. I provided her a copy of her contract that was given to me since I referred her, not knowing that she was planning to sue me after realizing she couldn't sue the owner.
Expert:  Law Educator, Esq. replied 5 years ago.
If she cannot provide proof she gave any money then this would hurt her claim as the courts require actual evidence.
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