First off, I realize that I made many STUPID mistakes in the name of trusting friends. This, combined with the fact that I am absolutely ignorant to how business, finances and the accompanying law works. I greatly appreciate any attempt to assist me here.
My story:
In 2013 a family friend of mine was starting up a restaurant in southern California(91739) that was incorporated in Nevada. The owner asked if I could help with construction and possibly work in the kitchen when they opened. I said I would under a few work related conditions(position,pay etc). He said that money was tight so they would pay me in stock for my work during construction but only after opening and after they calculated my hours worked from construction. I worked for them 25-30 hrs a week for 6 months, from 10/13 to 4/14. After calculating my hours worked, they said they were going to pay me 1000 stock that was worth $6 a share at the time and that it would take 2 years to vest. After opening day, I worked in the kitchen and was payed salary. Over the next 2 years, No matter how many times I asked the owner/president for paperwork showing proof of my shares he would always tell me "soon" or some other lip-service. Overhead on this restaurant was ~$60k/mo and after 2 years, multiple bank loans, and multiple new investors the business couldn't get out of the red and had to start downsizing to avoid going under. I was laid off on 7/16 and was given 1500 additional stock as an apology(I'm guessing). I was told(by the owner) that they were valued at $9 a share at that point. However, he is clearly not trustworthy so i don't know if the $9 claim is true. So now I have 2500 shares and finally have proof of it. However, my proof didn't show that 1000 shares of that had already vested(see pic). A few months later, the owner went to file for bankruptcy, but was advised not to by a successful businessman. This man offered to help the owner avoid bankruptcy by helping him reorganize and re brand. Since then, I have stayed out of contact with the entire family of people that own/run the business. I do know that despite their problems they still have a considerable cash flow coming from the owners mother-in-law. She is the principal/main/original investor(she is labeled as secretary on my stock cert) and still pays whatever monthly bills that the business cannot. The business is still open today and they show no outward signs of closing down.
I was going to post a pic of my stock cert but I don't think I am allowed to.
My concerns:
-How to get the money out?
Vesting: Owner claimed vesting takes 2 years
**was told I had 1000 shares(no documentation) on 5/14(vested by 5/16)
**was given 1500 more(total of 2500) on 7/16 with documentation when I was laid off.
Did he just **** me over on the vesting of the original 1000 shares?
Appeal to secretary for my money?
Sell my shares to a different investor?
How much can I get out(1000 or 2500 shares)?
-How do I know their current value?
Was told $6ps at grand opening 5/2014
Was told $9ps at 7/2016
-Would my shares make me liable to debtors/IRS if the business goes under?
-What legal foothold do I have to the money the stocks are worth?
Any help is greatly appreciated!
My story:
In 2013 a family friend of mine was starting up a restaurant in southern California(91739) that was incorporated in Nevada. The owner asked if I could help with construction and possibly work in the kitchen when they opened. I said I would under a few work related conditions(position,pay etc). He said that money was tight so they would pay me in stock for my work during construction but only after opening and after they calculated my hours worked from construction. I worked for them 25-30 hrs a week for 6 months, from 10/13 to 4/14. After calculating my hours worked, they said they were going to pay me 1000 stock that was worth $6 a share at the time and that it would take 2 years to vest. After opening day, I worked in the kitchen and was payed salary. Over the next 2 years, No matter how many times I asked the owner/president for paperwork showing proof of my shares he would always tell me "soon" or some other lip-service. Overhead on this restaurant was ~$60k/mo and after 2 years, multiple bank loans, and multiple new investors the business couldn't get out of the red and had to start downsizing to avoid going under. I was laid off on 7/16 and was given 1500 additional stock as an apology(I'm guessing). I was told(by the owner) that they were valued at $9 a share at that point. However, he is clearly not trustworthy so i don't know if the $9 claim is true. So now I have 2500 shares and finally have proof of it. However, my proof didn't show that 1000 shares of that had already vested(see pic). A few months later, the owner went to file for bankruptcy, but was advised not to by a successful businessman. This man offered to help the owner avoid bankruptcy by helping him reorganize and re brand. Since then, I have stayed out of contact with the entire family of people that own/run the business. I do know that despite their problems they still have a considerable cash flow coming from the owners mother-in-law. She is the principal/main/original investor(she is labeled as secretary on my stock cert) and still pays whatever monthly bills that the business cannot. The business is still open today and they show no outward signs of closing down.
I was going to post a pic of my stock cert but I don't think I am allowed to.
My concerns:
-How to get the money out?
Vesting: Owner claimed vesting takes 2 years
**was told I had 1000 shares(no documentation) on 5/14(vested by 5/16)
**was given 1500 more(total of 2500) on 7/16 with documentation when I was laid off.
Did he just **** me over on the vesting of the original 1000 shares?
Appeal to secretary for my money?
Sell my shares to a different investor?
How much can I get out(1000 or 2500 shares)?
-How do I know their current value?
Was told $6ps at grand opening 5/2014
Was told $9ps at 7/2016
-Would my shares make me liable to debtors/IRS if the business goes under?
-What legal foothold do I have to the money the stocks are worth?
Any help is greatly appreciated!