What to do about possibly misappropriated funds taken by a former business partner?
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What to do about possibly misappropriated funds taken by a former business partner?
One of my business partners walked out of our LLC. We are all 33.3% owners. He left and took 1/3 of the cash we had on hand, then proceeded to withdraw $10,000 from our joint bank account to “protect his investment”. What should we do? Was there a crime committed?
Asked on September 2, 2012 under Business Law, Maryland
Answers:
Paula McGill / Paula J. McGill, Attorney at Law
Answered 12 years ago | Contributor
You can try to file a complaint with the police and also sue him in civil court in the name of the LLC. First, have an attorney review the articles and bylaws of the LLC. Second, based on the information obtained from those documents, sue him for return of the money. Third, the remaining two owners may be able to remove the wayward owner from the company legally.
Also licensed in Maryland.
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