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Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102347
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I'm an employee here at *************. I was chatting with a

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My name is Larry *******. I'm an employee here at *************. I was chatting with a friend about starting an chemical company LLC. I recently developed a fertilizer thanks to his willingness to team me up with his growers. Problem is, he has a felony for identity theft, forgery and mortgage fraud. Although I will go and, eventually, seek an attorney for legal advice, I was wondering if you had any suggestions as to anyway I could do business with my friend? I'm already running into issues with potential investors and their knowledge of his past. I don't want to kick the guy to the curb and say "Thanks for the connect buddy...BYE!!". Any suggestions? Sincerely, Larry ******* JA: What state is this in? And can you tell me a little more about the charge? Customer: Sorry for the delay. Boss was standing over me :/ It happend in Upland, CA. Here is a link to the article summary: ******************/ JA: Has anything been filed or reported? Customer: I'm sorry I don't understand. In terms of his charge? Yes JA: Anything else you want the lawyer to know before I connect you? Customer: No, that's it. Ok thanks ;)

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I am sorry to hear about this situation. Please tell me:

1) What state is this in?

2) Will your business need any kind of LICENSE? If so, which?

Customer: replied 5 months ago.
1) What State is This In? California2) Will Your Business Need any Kind of LICENSE? If so, which? Yes. It will, eventually get into chemical manufacturing and pharmaceuticals and, eventually, cell biology/bioengineering.
It really depends on what kind of license specifically your company is going to need, more than the type of industry your company will be in. So can you please be more specific as to what kind of licensure you would be applying for?
Customer: replied 5 months ago.
Ok, I did some work and pulled up two types of license I would, undoubtably, need. They are below. They do ask for ALL operating managers/owners, members of a partnership, corporation, etc. Here are the types and links below:New Drug Manufacturing License Application
Biologics License Application
If he is going to be part owner of the company, then his convictions may be an issue. They do not automatically disallow the license, however, at the agencies' discretion, the license may be not granted due to the conviction of one of the owners.
Given that his convictions are for identity theft, forgery, and mortgage fraud, and given the sensitivity of the field, I can see the state having issues granting such licensure to them company if one of its directors/managers/etc is a three time felon.
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I hope this helps and clarifies. Please use the SEND button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of THREE OR MORE STARS and then click FINISH to submit that rating, as this is how experts get credit for our time. Rating my answer the bottom two stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating (it does not cost anything extra to rate).
Customer: replied 5 months ago.
Ok, I have one more question(s):1. If the state does not grant the license is there anyway to make him a "silent" partner or, perhaps, put one of his relatives as a director/manager/etc?2. Also, do you think simply contacting the state and explaining the issue will help (sometimes it seems better to just file and see what happens but the potential setbacks can be expensive)?Thanks again for the feedback also ;)

No problem at all, my pleasure.

Well the state will want all persons who hold a financial and otherwise interest. So silent or not, he'd have to be included on the paperwork. Excluding him while he IS a partner would be fraud, and the state can level criminal charges later for this. So this is not recommended.

YES, he can include a cover letter explaining what happened, affidavits from friends/family, etc. This will help enlarge chances of pushing such an application through.

Gentle Reminder: Please, use SEND button to keep chatting, or PLEASE SELECT THREE OR MORE STARS and click FINISH to submit your rating when we are finished. You may always ask follow ups at no charge after rating.

Customer: replied 5 months ago.
Ok, actually I have one more proposal:
1. Since he helped with the idea of the fertilizer blend, could he still have "royalities agreement/comission of sales" that are assigned to him as long as he is not on company paperwork. He was not involved with the "making of the product" but he did help establish the lines of communication.- Sincerely

Yes, but he would still hold interest in the company, meaning he'd have to be disclosed if the paperwork asks for all parties who hold interest in the company.

Gentle Reminder: Please, use SEND button to keep chatting, or PLEASE SELECT THREE OR MORE STARS and click FINISH to submit your rating when we are finished. You may always ask follow ups at no charge after rating.

Ely and 8 other Legal Specialists are ready to help you
Customer: replied 5 months ago.
Right on. Thanks again man and thanks for the fast response. I will definitely leave a good rating!!! Have a nice day ;)
No problem. Good luck!