From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1522 topics, 14436 posts — Last Post 04/23/14, 11:39AM

BiggerPockets Exclusive PRO Area

118 topics, 844 posts — Last Post 04/23/14, 08:28AM

New Member Introductions

10968 topics, 86438 posts — Last Post 04/23/14, 12:15PM

Real Estate Success Stories

397 topics, 6188 posts — Last Post 04/23/14, 07:49AM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5987 topics, 47182 posts — Last Post 04/23/14, 12:12PM

Renters

649 topics, 5856 posts — Last Post 04/23/14, 10:42AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/21/14, 03:59PM

Home Owner Association (HOA) Issues & Problems Forum

238 topics, 1611 posts — Last Post 04/23/14, 04:02AM

Do it Yourself

658 topics, 6316 posts — Last Post 04/23/14, 09:50AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3704 topics, 29699 posts — Last Post 04/23/14, 11:00AM

Real Estate Guru, Book & Course Reviews and Discussions

1139 topics, 11596 posts — Last Post 04/23/14, 11:28AM

Ask About A Real Estate Company

743 topics, 7344 posts — Last Post 04/22/14, 11:25PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5630 topics, 43907 posts — Last Post 04/23/14, 11:53AM

Rehabbing and House Flipping

3349 topics, 31094 posts — Last Post 04/23/14, 11:14AM

Real Estate Development & New Home Construction

554 topics, 4694 posts — Last Post 04/22/14, 09:17PM

Innovative Strategies

705 topics, 6044 posts — Last Post 04/22/14, 04:06PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

867 topics, 6692 posts — Last Post 04/22/14, 08:22PM

Rent to Own a.k.a. Lease Purchase, Lease Options

698 topics, 4921 posts — Last Post 04/23/14, 11:51AM

1031 Exchanges

143 topics, 1062 posts — Last Post 04/22/14, 03:21PM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1691 topics, 11313 posts — Last Post 04/22/14, 09:26PM

HUD, VA, and Tax Sales

416 topics, 3102 posts — Last Post 04/22/14, 01:39PM

REOs

1217 topics, 10595 posts — Last Post 04/23/14, 09:23AM

Short Sales

1538 topics, 13139 posts — Last Post 04/22/14, 01:38PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7243 topics, 71094 posts — Last Post 04/23/14, 12:13PM

Mobile Homes & Mobile Home Park Investing

639 topics, 5144 posts — Last Post 04/23/14, 07:57AM

Investor Basics

Starting Out

7725 topics, 60648 posts — Last Post 04/23/14, 11:42AM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4727 topics, 37314 posts — Last Post 04/23/14, 12:12PM

Real Estate Investor Marketing

1737 topics, 14144 posts — Last Post 04/23/14, 12:07PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1412 topics, 9004 posts — Last Post 04/23/14, 08:50AM

Multi-Family and Apartment Investing

1123 topics, 9362 posts — Last Post 04/23/14, 11:59AM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

644 topics, 4910 posts — Last Post 04/23/14, 10:40AM

Business Basics

Goals, Business Plans & Entities

832 topics, 7571 posts — Last Post 04/23/14, 09:48AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2803 topics, 20130 posts — Last Post 04/23/14, 11:48AM

Property Insurance

310 topics, 2055 posts — Last Post 04/22/14, 07:38AM

Personal Finance Discussion

330 topics, 2754 posts — Last Post 04/22/14, 12:06PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2853 topics, 19842 posts — Last Post 04/23/14, 11:55AM

Creative Real Estate Financing

1217 topics, 8845 posts — Last Post 04/23/14, 09:39AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1217 topics, 8024 posts — Last Post 04/23/14, 08:23AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1929 posts — Last Post 04/22/14, 11:03AM

Contractors

269 topics, 1690 posts — Last Post 04/22/14, 07:33AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

2012 topics, 11723 posts — Last Post 04/23/14, 12:05PM

Americans & International Real Estate

162 topics, 568 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 439 posts — Last Post 04/22/14, 09:27AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15077 topics, 54100 posts — Last Post 04/23/14, 11:42AM

Real Estate Events and Happenings

167 topics, 2590 posts — Last Post 04/23/14, 09:12AM

Off-Topic

Off Topic

Off-Topic

2907 topics, 32441 posts — Last Post 04/23/14, 11:24AM

Housing News & Real Estate Market

920 topics, 8390 posts — Last Post 04/23/14, 11:47AM

BiggerPockets Real Estate Investing Summit

97 topics, 1752 posts — Last Post 04/23/14, 04:51AM

BiggerPockets Resources

Forums » Tax, Legal Issues, Contracts, Self-Directed IRA » Business partner stole money, doing business behind my back

Business partner stole money, doing business behind my back

4 posts by 4 users

Signup

· San Diego, California


Hi guys, what would you do in my shoes?

So my former business partner "accidentally" wrote 2 checks from the corporate account of my other brokerage business where he is not an authorized signer. The checkbook is new and there's no name/business on the checks so he thought they were his. This is how I discovered he has a side-business and account and has been making deals without my knowledge.

I literally caught him red-handed when pictures of the check showed up in my account. One of the signatures is his and one appears to be a forged replica of my own. The account he stole from is registered to my legally incorporated corporation.

The 2 checks were:
1. $xxx= Paying rent to himself from the corporate account of another broker: me
2. $x,xxx = Signed a year-long contract with a deposit using my stolen funds

Upon notifying him on his error he immediately deposited the missing money. Without any doubt, the relationship is over between me and him. However I would like to continue operating the property-management side of the business. It is lucrative and substantially profitable.

[Summary]
He is a licensed California broker and has been comingling client funds between his personal, checking, and business account. He has written 2 fraudulent checks with stolen funds of another broker (me) to 1. Enter into a 1-year lease contract and 2. Deal stolen funds to himself in the form of "rent." He is also employed by KW and has been accepting checks w/o the checks passing through KW as commission. When we started our property management business, he was not a licensed broker (only a salesperson) and was not currently employed at a brokerage. I also don't belive any of the money he collected as income has been reported to the IRS.

What exactly is he guilty of and what would you do? What kind of leverage do I have?

-Michael



Rehabber · Riverside, California


If he's doing this to you, can you imagine what he's doing to others?! I would run far, far away. It's probably only a matter of time before things get much more serious and I can't imagine you would enjoy your hard-earned reputation being commingled with his.


Small_tng_webAaron Norris, The Norris Group Hard Money
E-Mail: [email protected]
Telephone: 951-780-5856
Website: http://www.thenorrisgroup.com
The Norris Group l www.TheNorrisGroup.com


Hard Money Lender · Tyngsboro, Massachusetts


@Michael McGuire, I'd disassociate myself entirely. I've learned by experience that if two people are partners, the public assumes that what one does is ok with and endorsed by the other. You don't want to get painted with the same brush. It's not worth it, no matter how lucrative.

I also wouldn't insert myself between him, KW and the IRS. Just get out and cover your butt. If you get involved in reporting him, it will get even worse between the two of you, and will go downhill from there.


Small_small_logoAnn Bellamy, Buy Now, LLC
Telephone: 800-418-0081
Website: http://www.buynowhardmoney.com
Hard money lending in NH and MA, and for free networking in MA, http://www.BlackDiamondREI.com


Real Estate Investor · memphis, Tennessee


@Michael McGuire - I completely agree with both @Aaron Norris and @Ann Bellamy. You do not want to risk you own reputation as it is being built up and you certainly do not want to be in proximity to him when and if he gets himself into trouble.


Small_new_mi_logoChris Clothier, Memphis Invest, GP
Telephone: 901-212-9647
Website: http://www.memphisinvest.com
www.MemphisInvest.com 1(877)-773-9998 Chris D Clothier




Sign up