My Partner is Stealing Money/Ruining Our Business concern, Now What?

There is almost goose egg worse than the feeling that those you should exist able to trust most are taking reward of that trust. All the same, it happens–in family relationships, social relationships, and in business. What should you do if you believe your business organization partner is stealing coin from your business organization? This type of illegal concern conduct (i.due east., fraud, embezzlement, breaches of fiduciary obligations, theft) are legitimate concerns and should be addressed right abroad. Burying your head in the sand pretending it will go away on its ain volition simply make matters worse. So, what exercise you do if you doubtable your business partner is surreptitiously removing coin from company accounts or is taking business organisation holding/assets for his personal use instead of for the benefit of the business?

The first thing to do is remain level-headed. It is far too piece of cake to permit emotion and anger dominion the 24-hour interval when that volition just detract from resolving the situation. After all, you entered into the concern human relationship because you lot trusted this person and believed your partner would never take advantage of you. . . right? You are justified in feeling betrayed and angry, notwithstanding, yous must remain calm because this situation volition likely just get more stressful in the ensuing weeks and months while you work towards resolving the situation.

my partner is stealing ruining business now what

Gathering Show While Protecting Company Cash/Avails

You demand to brand sure the partner is actually stealing from the concern. This is done through gathering evidence. A '"mere suspicion" that your partner is stealing from the business is not sufficient to evidence in court he is committing fraud or embezzling business money/assets. Many client are admittedly convinced their partner is stealing from them. When I enquire them how they know this, they often tell me it is merely a feeling in their gut or just because of the way their partner is interim. In many of those situations, I doubtable my client is probably correct. All the same, they cannot prove their case through a gut feeling.

Y'all must assemble actual bear witness of the theft through banking company statements, accounting records, credit card statements, receipts, inventory accounts, ATM withdrawals, etc. Keep meticulous business records of inventory, cash, and all transactions.

Put tight controls on the business organisation cash and assets. Require all purchases/expenses be matched with a legitimate receipt (i.e., one containing a business organization logo/name/address). Remove any unnecessary signers from accounts and limit access to cash and inventory to only those who genuinely need it to run the concern. Put safeguards in place that prevent any partner from unilateral access to greenbacks and assets (i.e., dual keys to a rubber box; dual keys to inventory and the business premises; dual signatures on accounts). To the extent coin and inventory is gathered/handled at the business organisation, consider installing video cameras as an added layer of protection to oversee who is handling the money and inventory.

Go along copies of all of these records. If your partner is stealing money or assets from the business, the records will reveal it.

My Partner is Stealing From Our Business | Denton Peterson, P.C.

Dissolution/Lawsuit

If you partner is stealing company cash/assets, you likely have several remedies, which may include filing a lawsuit confronting your partner for fraud, breach of fiduciary duties, or alienation of contract. The lawsuit volition often include a request for an injunction against your partner (to prevent that partner from having further access to company funds or avails) and may include a request to deliquesce the company. If the illegal conduct of your partner is serious enough, information technology may justify a criminal complaint against your partner for criminal fraud, embezzlement, or theft.

In extreme cases, you may be entitled to self-help remedies that allow you to take steps of securing company cash and avails to prevent further embezzlement or fraud. You lot should be very cautious in implementing self-assistance remedies because, if not done correctly, information technology may look to the court like you are the i harming the business or your partner. You should employ self-help remedies only under the direction of an chaser where y'all can meticulously track each step you take to avert any potential mistakes that could come up back and haunt you lot in this procedure.

Consult an Chaser Immediately

The company Operating Agreement, Bylaws and state or federal statutes volition often dictate what each partner tin and cannot do in these types of business disputes and what remedies are bachelor in terms of a lawsuit, arbitration, and damages. The provisions in the Operating Understanding, Bylaws and statutes tin can be somewhat complex then it is all-time to consult with an attorney who has feel in these blazon of business disputes—your options can be multi-layered and you demand an experienced attorney familiar with this expanse of police force to be able to recognize the potential pitfalls that will inevitably arise. Information technology is all-time to consult with an attorney at the very beginning of your suspicions considering these business partner disputes tin accident-up into something much larger than they should if they are addressed immediately. Waiting months in hopes that "things volition only work out" will simply make the situation worse, and may even render the visitor incapable of being salvaged due to the sustained fraud/embezzlement.

At Denton Peterson Dunn, PLLC nosotros have attorneys with many years of feel in handling these type of situations (often called "business divorces") and would be happy to sit down down with you to appraise your specific state of affairs. We tin provide you with an evaluation of your best options given your current circumstances.

Brad Denton, Arizona Business lawyerApproved Past:

Brad Denton – Denton Peterson, PC

1930 N Arboleda #200
Mesa, AZ 85213

Part: 480-325-9900
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Website: arizonabusinesslawyeraz.com