I also run a small software services firm. You are in an unpleasant situation. It's like removing a bandaid. Be prepared for the pain and do it anyway. 1. The

I also run a small software services firm. You are in an unpleasant situation. It's like removing a bandaid. Be prepared for the pain and do it anyway. 1. There is no pleasant way to have the discussion. Don't let this stop you from telling them that you don't think you can do the work in good conscience. You don't have to get into deep details about why you think the work is unethical unless you want to. Other than that, say as little as possible. 2. You have no obligation to build more things for this client or any other client. Turning down the work is unpleasant, but it sounds like you need to do it. 3. You can't always spot the scammers. Also, a perfectly good client may become an unethical client over time as conditions change. Be prepared to walk away. 4. I would be careful about trying to undo the damage. There is always the danger of making matters worse for your organization. You should seek legal counsel. Your lawyer will likely tell you not to do anything. You may decide you should do something anyway. If you do, define a process and stick to it and have your lawyer tell you what the implications will be. Use this as a lesson to always have a service agreement in place. The agreement should have a clause which allows either party to end the agreement with sufficient notice. Because you have no agreement in place, I would recommend you seek legal counsel immediately. Feel free to contact me (see profile) if you would like to talk about it.