Is this consider FRAUD? what should i do?
 

Well i do not know if this belongs to the business category? BUT here goes.

I will make this easier for you to read and understand, thus making it in point form.

- Wendal + guy formed a business, a Limited Corporation. (selling office supplies, shares were 50% each)
- Start of the business was March 2007
- Decided to end the business on March 2009 (Due to Wendal going back to Asia, guy opened up same new business and bought out the old business inventory. Inventory cost = $120,000)

Here is the tricky part.

- Guy with new company paid $90,000. and had an outstanding balance of $30,000.
- In March 2009 we could not close OUR SHARED business because there was an outstanding balance (or uncleared transaction of $30,000)
- Wendal had to go back to Asia in March.
- In April, Wendal came back and asked that Guy to clear the debt (pay the remaining balance of $30,000, so they can both close the business) But the Guy kept making excuses. Eg. too busy, has meeting etc.
- Wendal had to return to Asia.
- Oct 2009, Wendal came back to Vancouver. Found out that their SHARED business was closed.
- Basically, that guy waited till Wendal flew back to Asia, So somewhere in that time from April till Oct, that guy closed the SHARED business.
- Wendal has tried contacting him till today, But no answer.

So Wendal knows that he can sue that guy. But is it consider FRAUD, because the guy closed the business, but previously stated that they were not allowed to end the business because of uncleared transaction? Would it be a illegal thing to do? In this situation what is the best thing to do?

AGAIN thanks in advance for your help. And mods i do not know if this should be in here or in the police section.

What's the problem again?

Guy only paid $90,000 for his $120,000 in inventory.

is this written anywhere in their business contract that neither one can't close the business without the others approval? if its just an oral agreement its still legal and binding, but harder to prove.


if not, i think it might be legal for him to close, as each acts as an agent for the business, both have actual authority as well as implied authority to make decisions for the company.

don't think so, it's a Corp. business, there shoudl be shares about the company so he can't just "close it" and run away. I can see how he just takes the inventory and leave because he does have keys to the place. but yah... you get my drift.

I would be incline to say go to a lawyer instead.

Yes it is clear that you need two signing officers to do anything and everything. It is more like a fraud then i guess? but i was just wondering do i call the non-emergency and ask them or should i open a file claim? or what should i do?

I would like to hear from fellow rsers before i consult a lawyer. THanks

just call a lawyer already and stop wasting time waiting for RS answers..