Operating Agreement Issues

[Vince]

We entered into an operating agreement with a gentleman as an employee who would be making "X" amount of dollars and as an investor who was going to invest "X" amount of money into the business. This was signed on dec 18,2007. We began fulfilling all of our side of the agreement. At the time we were supposed to be paid for the first two weeks of work, it was found out that all of the monies deposited had been spent and there was no money left and they needed more. As we began to dig deeper, we began to find "skeletons" on a regular basis. After many talks and attempts to rectify the situation, lies, deceit, and criminal acts were being found out on a regular basis. New operating agreements were drawn up and signed. This agreement was a "performance" agreement where if we did not do the funding determined in the agreement, then this agreement would be null and void and our original agreement would be the valid one. Well we are now into march and we have not ever been paid one penny for payroll or for our investment since day one. I have received info today that the owner may try to pursue legal action against us. We do not have a lot of money and don't know what to do. I know this is short and very vague but I want to get the point out to see if we need to be worried. We are dealing with an individual who lies habitually and can't keep track of all his different lies he has told, as well as a conman, and acts of embezzelment as well as insurance fraud. Would welcome an attorney's advise, but any comments are welcome. BTW this is in phoenix arizona, in case you need to know.

Thanks for reading.

[randalljd]

It is hard to see how you could be sued successfully given his actions--what could he even try to claim?

thats what we were trying to figure out. but desperate ppl do desperate things. anyhow my wife resigned immediately today to seperate herself from the clinic and most likely we will never see our money............go figure.