Business Partner Accusing Me of Stealing

[patking76]

My question involves business law in the state of: CA

6 months ago I went in business with a guy who owned a gym. I was supposed to be a business partner and I even invested money. During the course of 6 months the gym never had enough money to pay me, so I paid myself a little at a time when there was extra money. So over the course of 6 months the gym had built a balance of money that was owed to me to about 13,000

In addition, a couple months ago the bank accounts started getting levied. So I offered to have the billing deposits put in to my other business account so that they wouldn't take the money and we couldn't pay our bills and payroll. My partner agreed. He signed the transfer form and I sent to the billing company and they started making the deposits to my account. I told him this was only temporary that he needed to get everything straigtened out within a couple of months.

A couple months went by and he did nothing to repair the situation. I had enough. I decided to leave. During the last month I paid myself some of the money back that the gym had owed me because I knew that once I left I would never get it. By the time I left it still owed me about 8000.

My partner wanted to start a new company and switch everything over. I told him that I decided to leave. He was very unhappy about this.

So after I left, he called the billing company and said that he never authorized the transfer of money to my account. Which is a lie, he signed the paper so I had hoped that would check the signature.

They attempted to reverse the deposits that was made to my accounts. The money was already gone, I had done payroll, paid some bills and used the rest to pay myself back.

Now he is stating the he never authorized it and is further accusing me of stealing.

Can I get in trouble for paying myself money that was owed to me?

I assume that the fraud department will do their due diligence and check the signatures before they go bringing some BS case against me right?

I kept track of all monies paid to me. Sometimes it was cash, check or bank transfer. But there is record of all of it.

Do I really have anything to worry about? The thought of being falsely accused of theft is making me crazy, I can't sleep. I have been in business for many years with many different partner and have never been accused of such a thing. If he continues to push this should I bring a suit against him? Defamation of character, money he owes me, stress that I incurred while working there having to deal with all the financial problems.

Any help would be appreciated.

[Mr. Knowitall]

If you were supposed to receive a salary, the gym should have paid you a salary. If the gym was short on cash to pay your salary, you and your partner should have loaned money to the business in order for it to pay the salary or your hourly wages out to you, and to pay the associated payroll taxes. Frankly, if the business had enough money for you to skim money to get the money it "owed you", it is not at all apparent why the gym would not have been able to pay your salary with that very same money. Are you telling us that your paycheck went up and down based upon when the gym had the positive "balance of money", or are you telling us that you simply skimmed money out of the register without recording it properly on the books as payroll? Did that money appear on the books at all?

If your partner signed a transfer form such that you could commingle business money with your personal money in your personal account, in order to keep that money from the legitimate claims of creditors, then his signature will appear on the form. Is he claiming that you forged his signature? Does the money that you redirected to your personal account appear on the books of the business? Is it all accounted for on the books of the business?

[patking76]

Thank you for your response.

Yes, basically my salary went up and down based on how much money the club had available. I did payroll, paid all the other employees, bills and what was left I paid myself. My bi weekly salary was 2750, the most I think I was ever able to pay myself at payroll was about 1500. So there was always a balance left over. Some payroll periods there was no money to pay me. So, when the club made some sales or had extra money I would simply just pay myself whatever I could at the time.

Yes, my "partner" was supposed to put up all the money when I took it over. He had the money and I had the 15 years experience running successful health clubs. That was the agreement. Problem is, he NEVER put money in to the club. He didn't even care if we didn't have enough money to pay our employees, his attitude was "oh well, I guess they have to wait" Seeing as I left my career to become an owner and I have a family to take care of.....I tried to make it work the best I could because I needed whatever money the club could pay me.

Yes, I did keep records for payroll of all the money I paid myself. Trust me, I have been running very successful health clubs all over the country and this is NOT how I wanted to run the business. I would have never signed up for it if I knew that. But once I did and I started realizing how bad it was...I felt stuck.

Yes, the partner did sign the transfer form. Although he stated to the billing company that he did not....he is just lying at this point because he's pissed at me I guess. I have all the documents. I have several documents that he signed including a copy of the transfer form as well. His signature is unmistakable.....it tells the truth. I just hope for my sake if he's trying to tell a different story that the billing company and the banks do their due diligence and actually check his signatures. I am by no means a forensic specialist and it's easy to tell that his signature matches everything else that he signed. Can he get in trouble for making false allegations like this? Isn't that in a since fraud it's self since he is trying to get the billing company to recoup the deposits from me?

Thanks again for your response. I am having a real hard time with this. Even though I know whats right and that i didn't cheat the system....it's still very stressful. I have a stellar reputation in our industry. I have worked for the best as an owner and employee with a lot larger companies with multiple clubs handling tens or thousands of dollars and I have never once been put in to question about doing something that would involve stealing or anything. It's crazy, I have worked my butt of my whole life to build a great resume and reputation and allegations like this could ruin it all......it has me really stressed just the thought of even having to defend myself with such a thing.