I commingled a small amount of business funds with personal, can I be sued or go to jail? ?
admin | Apr 01, 2010 | Comments 2
I started a company in Oct. 2005, and invested $80+ of my own money positive over 2 years of work. In Jan. 08 I had an investor buy in for $25k for 25% ownership positive he was required to lend the company up to $175k as needed. He cut us off after $63k in loans and the company went under. He’s coming after me now, but I have no personal guarantee. I did take/commingle some funds for personal use when I got desperate but only for food, car payments, and car insurance so I can keep traveling for work. I also made some cash withdrawals from the biz bank account to pay for some business bills, some can be documented, some cannot. I wouldn’t mind paying back anything that I didn’t document, I reckon there is a total of about $4k in “bleak area” transactions. I just want this guy out of my life without anymore distress. I know I was stupid, but can he sue me or possibly place me in jail because of this? If so, can I avoid all problems if I promise to pay him back for any transactions that are iffy? Would he be responsible for anything because he didn’t meet his investment we agreed on? I’m in the administer of filing personal bankruptcy, ch. 7, if that makes a difference. Please aid! Thank you!
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The terrible loans are on him and he’ll try to recover those funds from the sale of business assets, but the embezzlement is another issue — better call a lawyer.
This is the incorrect house to be asking your question.
You need a lawyer!
Any other advice you make here will be meaningless and could make you in distress.
For example, you don’t specify your form of business, sole proprietorship, partnership or corporation. It makes a difference
I repeat. Make a lawyer
Jerry-the-bookkeeper