How/with whom do investors file a complaint?

[no1chebon]

What is the name of your state? Kansas

Would like someone in authority to begin an investigation into possible mis-appropiations of investor funds. As an individual, I handed over 30k for a 2percent share of a health club in Oct.2000
(total of seven investors 30k each)...Some updates to the health club was evident, but in early March 2001, a fire totalled the business...(how convenient is that for ridding oneself of a papertrail?). The owner, who owns 80percent has been remodeling his private residence for the better of two-years and
even purchased his wife a vehicle....My questions is: what steps are necessary to BEGIN an investigation into accounting books and to what extent (if any) monies were used personally rather
than into the business as agreed?
Thanx

 

[ALawyer]

Love those fires -- and I am sure that you you have heard the jokes about "how do you start a flood?"

The best chance is if the private placement memorandum under which you bought the interest in the business venture was misleading or defective and/or not registered (in it needed to) with the state securities folks, or you were not a qualified and sophisitcated investor that could have participated in such an investment..

You'd need a lawyer to tell you if there is a claim. As for the founder misappropriating funds, that will be very hard to prove and you and your fellow investors have to proceed on your own. There really is no government agency that seeks to protect sophicticated investors or monitors private companies.