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  1. #1
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    Jan 2020
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    Default Family Business

    My question involves criminal law for the state of: North Carolina

    I am in a 3 member family business. I have recently found out, and have compiled a massive amount of evidence that my two partners ( Father and Step Brother ) have been embezzling money. I estimate over 300k between the two of them.

    I have hired and attorney and sent them a demand letter. My father has fired my step brother ( although he still owns a percent ). He has obtained his own attorney. I assume my step Brother will get his own as well.

    Does this mean I have to have two lawsuits going?

    Would it be better cost wise to turn them into the police for embezzelment and request restitution?

  2. #2
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    Oct 2006
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    Default Re: Family Business

    Quote Quoting Trident
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    My question involves criminal law for the state of: North Carolina

    I am in a 3 member family business. I have recently found out, and have compiled a massive amount of evidence that my two partners ( Father and Step Brother ) have been embezzling money. I estimate over 300k between the two of them.

    I have hired and attorney and sent them a demand letter. My father has fired my step brother ( although he still owns a percent ). He has obtained his own attorney. I assume my step Brother will get his own as well.

    Does this mean I have to have two lawsuits going?

    Would it be better cost wise to turn them into the police for embezzelment and request restitution?
    Those are questions that you really need to ask your attorney.

  3. #3
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    Default Re: Family Business

    Quote Quoting llworking
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    Those are questions that you really need to ask your attorney.
    I just figured that my attorney would have more interest in me pursuing civil litigation. opposed to criminal prosecution seeking restitution.

  4. #4
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    Default Re: Family Business

    Court-ordered restitution can't be discharged in bankruptcy so I know which one I'd pick.

  5. #5
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    Default Re: Family Business

    Quote Quoting bcr229
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    Court-ordered restitution can't be discharged in bankruptcy so I know which one I'd pick.
    I would be pursuing both perhaps.

  6. #6
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    Default Re: Family Business

    Quote Quoting Trident
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    Does this mean I have to have two lawsuits going?
    You likely could sue both in a single lawsuit, and should do that if you are going to argue they were working together to embezzle the money. Your lawyer will advise you how to proceed in the lawsuits.

    Quote Quoting Trident
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    Would it be better cost wise to turn them into the police for embezzelment and request restitution?
    You may want to do both. If the state prosecutes and wins that would make a civil lawsuit much easier to win. While the court might order restitution in the criminal case, that amount may be less than the full extent of the damages you could get in a civil lawsuit. Also with a judgment from a civil lawsuit you can collect from their assets yourself and not have to rely on the state doing that for you in the restitution. In short, both would give you more tools to collect the missing money. But before you make the police report consult your attorney. The timing of the report and what you say in the police report can affect your civil case and you don't want to end up doing something that might damage your civil claim.

    Quote Quoting bcr229
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    Court-ordered restitution can't be discharged in bankruptcy so I know which one I'd pick.
    A civil judgment arising from embezzlement is also not eligible for discharge in bankruptcy, though the creditor must take the proper step early in the case to file the motion asking that the debt be excepted from discharge.

  7. #7
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    Default Re: Family Business

    Thank you for all your responses.

  8. #8
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    Default Re: Family Business

    Quote Quoting Trident
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    Does this mean I have to have two lawsuits going?
    No.


    Quote Quoting Trident
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    Would it be better cost wise to turn them into the police for embezzelment and request restitution?
    We're in no position to conduct a comparative analysis of this. You told us that you hired an attorney, and this sort of analysis is something your attorney should be doing.

    Note, by the way, that you do not necessarily have a direct claim against your father and step-brother. It's possible that the only entity with a claim is the business entity (the form of which you didn't specify in your post). This is something else to discuss with the attorney you hired.

  9. #9
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    Default Re: Family Business

    Quote Quoting pg1067
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    No.




    We're in no position to conduct a comparative analysis of this. You told us that you hired an attorney, and this sort of analysis is something your attorney should be doing.

    Note, by the way, that you do not necessarily have a direct claim against your father and step-brother. It's possible that the only entity with a claim is the business entity (the form of which you didn't specify in your post). This is something else to discuss with the attorney you hired.
    Company is an S corp. i believe my attorney wants me to pursue a lawsuit. Estimated costs on this can be very high. My alternate course would be to go to the police and the DA and present all the evidence and request restitution.

    I just do know what is more cost effective. If I have a judgment against them, what kind of powers I have to collect them money.

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