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Asset Search?

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Beth8113

Junior Member
What is the name of your state?What is the name of your state? CA

My husband sold a product to a business. After the customer received his product he went to his bank and put a stop payment on the check. My husband left him phone messages to inquire what the problem was. Of course, no response. He was sent a "demand letter" stating the 30 days notice return receipt. We received the receipt back, signed by a co-worker. We have since learned that he moved in the middle of the night - owing rent. Now, all his phones have been disconnected.

Good news... we found him, but he doesn't know it. He has set up shop about 5 miles from his old office and has changed his company name. I've been by the new location and have seen their vehicles so I know it's them. We've also found that he has various business names he's worked under in the past. He has a family member who has been listed as a V.P. of the company, however, we've never met him or knew of his existance. We want to be very careful because we don't want him to know we found him because we're afraid he's going to run again. I'm thinking he may be hiding assets under one of the various business names. He thinks we only know about the one name.

Questions:
When we go to small claims do we list his name, the company name we know... and ALL other business names we can find he's listed as owner? All these other names are associated with the same type of business (i.e. they are all computer stores listing him as owner). Also, do we list the V.P. (person has same last name different first name -we're assuming a brother?)

Should we do an asset search before we go to court? If so, how much do they run?
 


S

seniorjudge

Guest
Beth8113 said:
What is the name of your state?What is the name of your state? CA

My husband sold a product to a business. After the customer received his product he went to his bank and put a stop payment on the check. My husband left him phone messages to inquire what the problem was. Of course, no response. He was sent a "demand letter" stating the 30 days notice return receipt. We received the receipt back, signed by a co-worker. We have since learned that he moved in the middle of the night - owing rent. Now, all his phones have been disconnected.

Good news... we found him, but he doesn't know it. He has set up shop about 5 miles from his old office and has changed his company name. I've been by the new location and have seen their vehicles so I know it's them. We've also found that he has various business names he's worked under in the past. He has a family member who has been listed as a V.P. of the company, however, we've never met him or knew of his existance. We want to be very careful because we don't want him to know we found him because we're afraid he's going to run again. I'm thinking he may be hiding assets under one of the various business names. He thinks we only know about the one name.

Questions:
When we go to small claims do we list his name, the company name we know... and ALL other business names we can find he's listed as owner? All these other names are associated with the same type of business (i.e. they are all computer stores listing him as owner). Also, do we list the V.P. (person has same last name different first name -we're assuming a brother?)

Should we do an asset search before we go to court? If so, how much do they run?

Before you sue him in civil court, check with the prosecutor's hot check division and see what it takes to file a bad check charge on him. That usually works wonders. (Fraudulently stopping payment on a check is usually a crime in most jurisdictions.)
 

Beth8113

Junior Member
Excuse my ignorance ...

Who do I call to get the "prosecutors hot check" division?

Do I call the Orange County District Attorney's office?

My husband wants to be sure he gets his lost funds plus treble charges.
Apparantly this is how this guy does business "illegally" and we want to get our money before others jump in.
 
S

seniorjudge

Guest
Q: Who do I call to get the "prosecutors hot check" division?

A: See answer below.


Q: Do I call the Orange County District Attorney's office?

A: Yes.


Q: My husband wants to be sure he gets his lost funds plus treble charges.
Apparantly this is how this guy does business "illegally" and we want to get our money before others jump in.

A: I doubt that treble damages are allowed in your case BUT the prosecutor may be interested in this guy's common scheme or plan to commit fraud.
 

Beth8113

Junior Member
I will be glad to call the District Attorney's Office regarding this guy. I didn't think about that and this jerk needs to be stopped. In the meantime we need to get the money back he stole from us. I was told the only way to do this was to take him to small claims.

I read California Civil Code 1719 regarding trying to collect on a bad check. It states that he can be liable for damages triple amount of the amount owed.

So, I was wondering before I walk into the court, because obviously this is an easy win, shouldn't I do an asset search to find out where exactly we can get repayment from. I would assume he's doing what he can to hide assets. We'd like to be able to show the judge where his funds are.

Anyone out there know how much an asset search costs?

Also, I'm still not sure who we should include in this. The President (the signer of the check) and name all three businesses we found in his name?
 

JETX

Senior Member
Beth8113 said:
When we go to small claims do we list his name, the company name we know... and ALL other business names we can find he's listed as owner?
That depends on several factors that you haven't told us about.

For example, your post implies that this person was simply an employee ("We received the receipt back, signed by a co-worker"). Yet your post said "My husband sold a product to a business."

Was the buyer an individual.... or a company?
If a company, what is its form (corporation, partnership, proprietorship, etc.)??

All these other names are associated with the same type of business (i.e. they are all computer stores listing him as owner).
That would imply proprietorships.

Also, do we list the V.P. (person has same last name different first name -we're assuming a brother?)
And that would imply corporation.
So, which is it??

Should we do an asset search before we go to court?
Depends on the above.... and the amount of the claim. If the defendant (corporation or proprietorship) has the assets your post implies (computer store), an asset search would likely NOT be needed.

If so, how much do they run?
Depends on how much investigation you want.
 

Beth8113

Junior Member
This person is listed as the "Owner" and President of his business which is a Corporation. This person is also listed as the owner of four other business names (possibly corporations but not sure - that's what we're researching now). We found the "corporation" via public records.

The Owner/President wrote a check to my husband, using a check with the business name on it and signed by him, the Owner of the business.

We also found, via Orange County records, that he owes taxes from a past year for business property owned. They were trying to locate him as well and were asking us lots of questions.

We are only out to gain around $3,000.00. This may not be a lot to him but surely is plenty for my husband.

We know this business has 5 employees - Him (Owner/President), His Brother (V. P), His Girlfriend (Office Manager/Bookkeeper), and two salesmen. We have everyone's name.

We believe the Girlfriend is in on this fraud and wouldn't be surprised is she's hiding funds under her name. She drives a nice expensive SUV and the Owner/President is driving an older station wagon. I don't know if there's anything we can do regarding the girlfriend and searching her funds. Can we if she's an employee?

He moved into a office complex where I know the rent is much higher than what he was paying before. I can only assume he's goimg to run again when his time runs out there.

This reason I'm asking about the asset search is . . . I'm sure he thinks we only know about the one business name. I'm sure he shows little funds in his bank accounts under that name. He's probably hiding assets under one of the other four businesses. We're thinking we need to check into these other business names to see what assets are there. Also, don't we have to mention these other business names as defendents in order to be able to aquire funds from them (assuming thats were the money is)

My husbands also thinking this guy just isn't going to show up in court. We'll, win the judgement, however, we won't be able to collect because he'll never respond to us. Then what do you do? If we already have all the info on his accounts (we think he has several - which is what we think an asset search will find) can't we just show that to the judge and he can order the bank (whichever bank it is) to release the funds owed to us?

I think I answered all your questions =)

Thanks for your help!
 

JETX

Senior Member
Beth8113 said:
This person is listed as the "Owner" and President of his business which is a Corporation. This person is also listed as the owner of four other business names (possibly corporations but not sure - that's what we're researching now). We found the "corporation" via public records.
Okay, getting closer.
Was the purchase made by the individual.... or by the corporation??

The Owner/President wrote a check to my husband, using a check with the business name on it and signed by him, the Owner of the business.
Here is where you are getting confused. An individual does not OWN a corporation. A corporation is a separate stand-alone entity, with all the rights and obligations of a person. As such, and unless you can prove corporate fraud, malfeasance, etc., an individual cannot be held liable for the debts of the corporation.

Your ONLY claim would be against the corporation. Go ahead and sue both the corporation and the individual... and let him file a motion to dismiss against him personally.

We also found, via Orange County records, that he owes taxes from a past year for business property owned. They were trying to locate him as well and were asking us lots of questions.
Not relevant.... and based on your post, unlikely that he was 'hiding' from them. More likely that they just hadn't gotten around to pursuing his property tax records..... yet.

We believe the Girlfriend is in on this fraud and wouldn't be surprised is she's hiding funds under her name. She drives a nice expensive SUV and the Owner/President is driving an older station wagon. I don't know if there's anything we can do regarding the girlfriend and searching her funds. Can we if she's an employee?
Not relevant... and no.

This reason I'm asking about the asset search is . . . I'm sure he thinks we only know about the one business name. I'm sure he shows little funds in his bank accounts under that name. He's probably hiding assets under one of the other four businesses. We're thinking we need to check into these other business names to see what assets are there.
Based on your post.... if the defendant is a corporation, you would have NO right to claim against other corporations.

Also, don't we have to mention these other business names as defendents in order to be able to aquire funds from them (assuming thats were the money is)
No.

Then what do you do?
Winning the judgment is often the easy part.

If we already have all the info on his accounts (we think he has several - which is what we think an asset search will find) can't we just show that to the judge and he can order the bank (whichever bank it is) to release the funds owed to us?
Nope. Garnishing bank funds simply doesn't work that way.
 
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