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I started a company with someone a few years ago. The company we create raised 600K over a period of 3 years from non-institutional investors. The company we cr
by rckbtmthrowaway 9y ago
I started a company with someone a few years ago. The company we create raised 600K over a period of 3 years from non-institutional investors. The company we created was actually making money (~450K in revenue in a single year with 2 FT and 1 PT employee)
Anyways fast forward 3 years, I come to find out that my business partner had been paying himself 450K/year (instead of the 125K he told me about), he drained our bank account, sent out fake financials to investors, bounced employee paychecks, told me he was paying my taxes (I was W2, but he spent them) and took out 150K in loans again the company to keep everything going so he could continue with his bullshit lies. In the end, between the taxes he stole from me, and back salary I was promised --- he owes me a total of ~80K + interest for a few years.
All of the employees resigned, and subsequently started a consulting firm that has been doing extremely well for many years now.
Needless to say, rock bottom was finding out someone stole 80K from you and your company was failing because your business partner is mini Madoff.
- justboxing 9y ago> I come to find out that my business partner had been paying himself 450K/year (instead of the 125K he told me about), he drained our bank account, sent out fake financials to investors, bounced employee paychecks, told me he was paying my taxes (I was W2, but he spent them) and took out 150K in loans again the company to keep everything going so he could continue with his bullshit lies. That's alarming. How did you meet / find your Business Partner? Did you vet him?
- rckbtmthrowaway 9y agoI met him at a meet up initially, he went to a Ivy League B-school and I met many of his friends and family (wife, kids, father-in-law) over the years before all of this shit came out. Since his friends and family invested in this company, I figured that he had skin in the game so I let my guard down, turns out he fucked them over too.
- pfarnsworth 9y agoDid you report him to the authorities I hope?
- rckbtmthrowaway 9y agoyes, but authorities (DA) have yet to make an arrest.
- fencepost 9y agoIf that's local, you might also find that the IRS has an interest in taxes reported as being paid but instead embezzled.
- rckbtmthrowaway 9y agounfortunately he handed me a 1099 at the end of the year, right after he admitted he fucked me over. i had no choice but to accept it to file my taxes so i just basically was given a huge pay cut, and he didnt technically embezzle - he stole from me, not the IRS
- pfarnsworth 9y agoYou should to on the record and sue him civilly then. Otherwise he's going to move onto the next victim over and over again, and more people will be hurt because of him. If he gets away scot free then it's simply not fair for those future victims.
- rckbtmthrowaway 9y agoI am going to, just waiting for the DA to press charges (or not). If he pleads guilty, the civil case is much cheaper for me. The statute of limitations for fraud like this is six years.
- 9y ago
- MaxfordAndSons 9y agoI hope you at least got a chance to call him a "mini Madoff" to his face.
- rckbtmthrowaway 9y agoi didnt get a chance to, but it isnt over yet ...
- rblion 9y agosilver lining: you're getting an $80k salary for a few years while you build your next project