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  1. #1
    Join Date
    Nov 2013
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    3

    Default Convinced to Invest in a Business That Does Not Exist

    My question involves criminal law for the state of: California.

    From November of 2012, a friend(lets call him Al) came and asked for $8000 each from another friend (lets call him BoB) and I. He asked for the money to purchase a website for investment which at the time cost $20,000. We were all suppose to put in $8000 each so we can all be equal partners in ownership.
    Fast forward 3 month, Bob and I has never seen the website Al kept on giving us the run around that it is because its not finished. Fast forwarder another 6 month (now August) Bob and I are starting to wonder what happened to our money. Long story short, about 2 weeks ago, we finally confronted Al and he told us that the website never existed and he used the money to pay off his own bills from prior debt of a company that he was the owner of (only 1 employee, himself).

    My question is what are my options are in terms of getting our money back? The total amount that was actually put in ranged around $30,000 (Bob had kept on putting in more money at the request of Al unfortunately) However, the amount on paper was only suppose to be $16,000.

  2. #2
    Join Date
    Jan 2006
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    38,367

    Default Re: Invested in a Business That Does Not Exist

    Invested in a Business That Does Not Exist
    well, that surely doesn't sound like a sound investment practice.


    My question is what are my options are in terms of getting our money back?
    ask or sue

    Depending on exactly what the agreement was when you invested the money, your odds of obtaining s judgment could be anywhere from 0% to 100%,

  3. #3
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    Nov 2013
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    3

    Default Re: Invested in a Business That Does Not Exist

    Quote Quoting jk
    View Post
    well, that surely doesn't sound like a sound investment practice.


    ask or sue

    Depending on exactly what the agreement was when you invested the money, your odds of obtaining s judgment could be anywhere from 0% to 100%,
    The Title was changed by Admin, originally he showed us a sample what the websites was capable of. We were pretty good friends for the past 6-7 years so I thought nothing of it at the time to invest the money.

    The agreement was each of us putting in $8000 ($24000 including himself) to open a company with each of us getting 1/3 ownership. Later we found out he never put in his $8000 and took our $16,000 and used on something else.

  4. #4
    Join Date
    Jan 2006
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    38,367

    Default Re: Invested in a Business That Does Not Exist

    so, you are partners in an informal partnership?


    was any formal action taken to establish the company?


    Was there any business agreement entered into or was it:
    hey, here's $8k. Go ahead and do what we talked about?

  5. #5
    Join Date
    Nov 2013
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    3

    Default Re: Invested in a Business That Does Not Exist

    Quote Quoting jk
    View Post
    so, you are partners in an informal partnership?


    was any formal action taken to establish the company?


    Was there any business agreement entered into or was it:
    hey, here's $8k. Go ahead and do what we talked about?
    Originally we were suppose to have a partnership contract written up which kept on getting delayed. Every time I asked him, there would be 10 excuses as to why it was delayed.

    The company itself is actually established as it does not cost much to start a Inc.

    The business agreement (the $8000) was supposed to be used for a website related to this company.

  6. #6
    Join Date
    Sep 2005
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    Default Re: Invested in a Business That Does Not Exist

    There's a difference beween investing in a business and having the proprietor of the business subsequently use the money for his own personal needs, and having somebody convince you to invest in a business when they intend from the start to pocket the money for personal use. Which are you alleging and, if the latter, what evidence do you have of the person's intentions at the time you gave him the money?

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