What is the name of your state (only U.S. law)? CA
About 4 years ago I invested $50,000 with a friend and his cousin, an American, in the food manufacturing business. Other people were also involved. The venture was to start a food company in Russia. We had a Russian partner, and the cousin already had a plant in Moscow. The product was well received and they needed money to expand. I was told that they would incorporate in Russia and that I would be a 5% owner and receive stock certificates. I wrote a personal check to my friend's cousin for my investment.
Needless to say the investment has not worked out. I knew the risk going in, being that we were investing in a foreign country, and not all investments work out. What upsets me is the lack of concern or effort on the part of the cousin. I considered him like a General Partner who would try to look after our interests. Instead he seems to have lost interest in the project. In over 4 years time he has taken only one trip over to Russia to have look at what is going on. When I press him about taking a more active role in the venture he says he can't because he has a business to run in the US, and there is nothing he can do about it anyway.
I gave my money to this person in good faith and was told, in front of others, the structure of the investment. We have received no stock certificates, nor any communications regarding the progress or lack of it regarding our investment.
I am considering suing this individual, not for making a bad investment but for lack seeing the project through. I feel he has some fiduciary responsibility to the investors.
I handed him a personal check which he deposited in his bank in the US. I think at the very least he should be arrested for fraud.
My question is do I have case that is worth pursuing? Even if it is slight, I could use the threat to make the person act on our behalf
Thanks in advance for any comments or advice.What is the name of your state (only U.S. law)?
About 4 years ago I invested $50,000 with a friend and his cousin, an American, in the food manufacturing business. Other people were also involved. The venture was to start a food company in Russia. We had a Russian partner, and the cousin already had a plant in Moscow. The product was well received and they needed money to expand. I was told that they would incorporate in Russia and that I would be a 5% owner and receive stock certificates. I wrote a personal check to my friend's cousin for my investment.
Needless to say the investment has not worked out. I knew the risk going in, being that we were investing in a foreign country, and not all investments work out. What upsets me is the lack of concern or effort on the part of the cousin. I considered him like a General Partner who would try to look after our interests. Instead he seems to have lost interest in the project. In over 4 years time he has taken only one trip over to Russia to have look at what is going on. When I press him about taking a more active role in the venture he says he can't because he has a business to run in the US, and there is nothing he can do about it anyway.
I gave my money to this person in good faith and was told, in front of others, the structure of the investment. We have received no stock certificates, nor any communications regarding the progress or lack of it regarding our investment.
I am considering suing this individual, not for making a bad investment but for lack seeing the project through. I feel he has some fiduciary responsibility to the investors.
I handed him a personal check which he deposited in his bank in the US. I think at the very least he should be arrested for fraud.
My question is do I have case that is worth pursuing? Even if it is slight, I could use the threat to make the person act on our behalf
Thanks in advance for any comments or advice.What is the name of your state (only U.S. law)?