I live in NYC, and I opened a business with my SIL in Sept 2005. She was in charge of finances and I handled the clients. In 2006 we were approaching the credit limit on our CC. She wanted to pay it off with her home equity loan. I didn’t want to mix personal finances with business seeing as the amount of money was fairly large ($11K). Instead, we agreed to open a new CC, transfer our balance and take advantage of the 1 year 0% interest the new CC was offering. In Dec 06 her husband made a comment about working for him b/c the 1st CC was in fact paid off with the HEL. Furious, I confronted my SIL and expressed my anger. She convinced me it was all the same since the HEL and her home was in HER name and not to worry about it. We both continued to use the new CC, and things were fine. July of 2007, her husband found out we had been using the 2nd CC, and once again our balance was pretty high, (13K out of 18K). They were having $$ issues and the balance were barely being paid. My SIL claimed the CC was opened fraudulently (by me) and she had no idea about it. We sat and tried to work it out, but the only solution that would be was to have the entire balance transfered to my name and SS number. Not wanting to do that, they tried to scare me into it, with lawyers, and a detective friend that owed them a favor. Long story short, the detective got involved claiming if I did not admit to these accusations I would be arrested. I told him to do what needed to be done. He asked if I would come down to the station and write a statement. I told him no, but I would have an attorney draw up a document stating I would be responsible only for the charges that were on the card bearing my name. Satisfied with that arrangement, we decided to deliver the document via fax the following day. I also provided him with several signed sales slip with my SIL signature on them. The detective also assured me that he would follow through with a charge of filing a false police report. Weeks later I receive letters from a CC company asking to verify the fraud that had taken place. I spoke with a rep with the company and explained the story. I then received emails from my SIL saying she was angry with what I had told the CC company. Further along in the email she goes on to explain why she did what she did. Not wanting to return to work, and fearing her husband would leave her. She stated she would have me raped and killed if I did not cooperate with her. I went to the police and she was arrested for harassment. Charges were dropped when she could not produce her computer ( it mysteriously got a bug the night the last email was sent) to verify the IP address.
She has continued to tell these horrific and false statements to friends, family, clients- anyone who will listen. Telling them my husband and I are thieves, frauds, and that we have stolen from them before, claiming we asked them for a personal loan that they denied. (That never happened; I have good credit and can get a loan/credit card on my own.) The repercussions of their actions have caused business to come to a complete halt. They have refused my attempts at contact, and have been direct with their reasons why, all of this stemming from my SIL accusations. My SIL has renamed our business, yet has kept all of my original designs and art work. Clients that were once ours are now hers. She ignores my request for to formally dissolve the business, and I am not sure what to do next. Week after week the accusations keep coming. At school and church, sports activities and fund raising events. My husband and I have kept our heads up, there are a few who don't believe the rumors, but it is getting harder and harder to do. If defamation has one great example, I am sure this would be a great one. What would my next course of action be?