Business Failing Because of False Charges

[Bubbleebit]

What is the name of your state? New Mexico
My brother runs a business, in a small town, that he planned on expanding. A friend wanted to go into the business by helping to pay for the expansion in exchange for a small partnership. My brother agreed and the friend gave him her credit card to help pay for everything. When my brother tried to use the card it was declined and the friend gave a 2nd card, which was accepted - after the company verified the charges with the friend. All was well until a couple of months later the friend and my brother had a falling out. She and her husband then decided to file charges against my brother for "stealing" her credit card and for fraud from a different incident, but still related to the business. My brother took a polygraph test and passed it completely, and after an investigation, no charges were filed against him - as the DA found no grounds. In the meantime, though, my brother's business has decreased dramatically. He was forced to downsize to a smaller building and his income is now 1/4 of what is was before... All a direct result, without question, from these completely False Charges that were brought against him.

It seems to me she should have criminal charges brought against her for making false charges - but don't believe the DA is interested in persuing anything there. But I believe the actions taken by this woman and her husband to also be Defamation of my brother's Character. Is it? And if so, what recourse do we take?

Thanks for your time and advice - its greatly appreciated!

 

[meganproser]

Are her allegations provably false? Just because there was not enough evidence to prove her case, doesn’t mean your brother was innocent.

If either of them wants to charge the other with something, they need evidence to PROVE their side of the story.

 

[Bubbleebit]

The credit card company has a record of the calls made to them both by my brother and his friend, but since they're her records they can't be released to us - only her and/or the police. Also the company that he did business with has a record of her verifying the right to use her Credit card... Is that proof enough???

 

[meganproser]

>>The credit card company has a record of the calls made to them both by my brother and his friend,

Then it makes no sense at all that the police would have given your brother a lie detector test. Perhaps the test had more to do with the “other” fraud you mentioned?

If your brother can prove the woman falsely accused him of stealing her credit card and she relayed that accusation to someone other than authorities, he may have enough to sue her for defamation.

He should start by contacting the cop who investigated the theft charge and asking him/her if the woman can be charged with making a false report. If the cop thinks your brother’s innocence cannot be proven, you would have a very difficult time winning a law suit against her.

BTW, I don’t know what the statute of limitation for defamation is in NM, but it’s one year in most states. That would usually mean one year from when your brother first learned she was making false accusations against him.

Let us know what happens!

*I am NOT an attorney.