business fraud, partner claims bipolar

[JPSerino]

In Oct 2008 my wife and I partnered with a man, with whom my wife was familiar, to produce and market her's and other natural beauty products. We drew up a signed contract, which was to be consummated by an LLC partnership. This partner rushed off to Brazil to begin putting contracts in place with manufacturers, etc., which I verified as valid and knew him. We were the sole financiers of this venture. We gave him a company credit card to use. Within 2 months, he had no signed contracts or agreements and proceeded to go on a whirlwind of excess dining, spending on personal items and travel totaling $300,000.

This 40 yr old man's father called to tell me his son was "not good with money". We then found out that he was under a psychiatrist care for many years, and is on SSI. He was at one point a successful salesman in the industry, but was fired. His contacts did not mention this. He did not mention this. His father did not mention this.

The man's father is a wealthy retired businessman worth $15 million. He told me he "tried to warn me". He said his son would never have money, that a family trust would take care of him.

This 'partner' misappropriated funds, did not fulfill stated contract obligations and never filed tax papers for his LLC. This money was from the sale of another investment and I have had to pay taxes on it, while unable to claim a business expense.

Do I have a claim against the family trust? Can I file a lien so some day my kids might recoup something? Do I have a legal case?

[AFFA]

I wish to inform you that you may file a suit against the person who has done the fraud. Family Trust may be included if it can be shown that the Family Trust is created to circumvent the provisions of law or for fraudulent purposes. You will be required to show the wrong done to you and your company and the liability of the other person. As at present the assets are under the control of father of the other person, therefore, you may not file a lien against assets because the assets do not belong to the person.

AFF

That is fraud--you certainly can sue!!