Breach of contract on sale of business

[jsm08]

Florida

I sold my insurance business and have been receiving monthly pymts. I haven't received a pymt since 2/15/10.

During this time I have still processed pymts from my old insured, posted them to their accounts to keep their policies current, but have not deposited the money into the sweep account of the party that purchased my business becaue they haven't been paying me. The amounts I've collected do not cover the monthy payment amount.

What legal ramifications do I and the other party face? He informed me that I'm being investigated for fraud but I never defrauded any of my old clients that made their pymts. They were posted to their policies.

 

[tranquility]

Lots more facts would be needed, including the contract. However, it seems you are as much in breach as the other. If not, what is it you "sold"?

 

[Dave1952]

Forgive me but I know very little of how an Insurance Office is run. What's a "sweep" account?
You sold an insurance business and expected monthly payments per the sale's contract. The new owner is not paying you. So, what have you done about this?
Some old clients of this business have continued sending renewal forms and payments to you for some reason. Oddly you do not forward these to the new owner. Instead you "post" them (whatever that means). It is not clear what you do with the money that is sent. After all, you should not be able to cash these checks. I'm guessing that you do cash these checks, pay for the clients' insurance and keep the profits (the sweep account?).
Honestly, you had a "civil" beef with the new owner but now you've been stealing from him, instead of suing him. I'd advise going to your lawyer. Maybe he can help you.
Please correct me if I've misunderstood your post.

Good luck

 

[jsm08]

when a client makes their monthly pymt to me I post it to their policy and the money is swept from the purchasers bank account.

i did not forge and cash checks nor did I keep the commissions. i did this as a courtesy to help make it a smooth transition.

instead of depositing the money in his account I put in mine to recoup the monthly payment that wasn't being made by the purchaser.

 

[Zigner]

when a client makes their monthly pymt to me I post it to their policy and the money is swept from the purchasers bank account.

i did not forge and cash checks nor did I keep the commissions. i did this as a courtesy to help make it a smooth transition.

instead of depositing the money in his account I put in mine to recoup the monthly payment that wasn't being made by the purchaser.

Was that an allowable remedy? If not, then you are also in breach.

 

[jsm08]

it was never discussed because i couldn't get in contact with him.

it also was written in the contract that i would still service the policies during the transition.

 

[Dave1952]

If I understand you correctly you are taking the checks and depositing them in your account. You are then paying for the renewed insurance out of the company's sweep account.
This isn't your money that you are taking. You are resorting to self-help which doesn't look good.
Talk to your lawyer about this.

Good luck