What recourse do I have if a business partner stole my investment capital?

UPDATED: Jan 5, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What recourse do I have if a business partner stole my investment capital?

I created an LLC to buy cars to scrap with a gentleman that owned a towing company. He secured a deal to buy 50 “u-haul” type trucks. I had a cashier’s check drawn off my home equity line (100% my cash) and made out to the company that he said was holding the trucks. Long story short, I found out later that he somehow got the money cut back to himself. He has since filed Chapter 7 bankruptcy but did not show me as a creditor. His home was foreclosed. He has lost his business and opened another towing company. It seems to me that what he did was criminal. Embezzlement?

Asked on January 5, 2011 under Business Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

1) What he did does indeed sound like it may well have been embezzlement. If you haven't already, contacdt the authorities (e.g. police; state AG office)--there's no cost to you to do so, and they can tell if this looks like a  criminal case and then pursue it if it is. Note that this may not help you get any money back.

2) To get your money back, you'd have to sue your former partner. This is complicated by his bankruptcy, but if you were not given notice of the filing it may be possible to avoid it; also, if he's already been discharged and you were not a scheduled creditor, it may be possible to now sue him. You should discuss this matter with an attorney with experience in collecting debts of this type.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption