Forming a group and want to back out

[imthird]

Hoping this is the right category...

A couple months ago I was sent a message a group was forming and if I

was interested.

There are about 10 of us and after a couple weeks, I started doing

research and put most of my time into developing a plan we could use.

A day or so after I joined forces with a girl who started devoting

her time and knowledge.

We decided to create a business and asked each member to contribute

$100 dollars, each.

A week after getting the money together, My lady friend and I found out we

need lots more money to do what we need to start our business.

Through email messages I told the others it will take much more money

to begin this venture.

My lady friend and I told the other members of the benefits they

would receive for their financial contribution of $100. This was told

before realizing we needed much more money.

I never paid the $100 but I have incurred ALL the expenses... Domain

names, email software and web designs etc.

I would like to know how to get out legally from this group... I

would still want to honor what was originally promised but the time

and money needed is well over what was originally thought.

How can I exonerate myself from not being sued should the business

take off?

Would a non disclosure of their signing. For example: "I have read

and understand the 'investment opportunity' and will NOT pursue legal

action." Then they would sign their name.

I need advice as soon as possible to extricate myself. I do

practically all the work!

I'm willing to give the money back and still give them the benefits

of what I am doing...

 

[Proserpina]

A group doing what, exactly?

(Yes, I'm going there for a reason )

 

[imthird]

Hi Proserpina,

This is for building a website presence which is a service to customers. The expenses have all been paid by me and the websites are in my name on my server.
I told the rest of the group before a website was even built, they would be able to make commissions from their various products, such as dvd's or music downloads.
Then I found out how expensive it is going to be to fully automate and bring the software into the program...

Thank you for any advice...

 

[army judge]

Hi Proserpina,

This is for building a website presence which is a service to customers. The expenses have all been paid by me and the websites are in my name on my server.
I told the rest of the group before a website was even built, they would be able to make commissions from their various products, such as dvd's or music downloads.
Then I found out how expensive it is going to be to fully automate and bring the software into the program...

Thank you for any advice...

I suggest you begin by immediately returning the money that one could term to have been obtained under false pretenses.
Is it?
Only a court could decide, but they could certainly make a fuss.
You also failed to contribute the required $100, yet you took $100 from the marks, err acquaintances.
You could also run afoul of state and federal tax authorities.

What you're doing is similar to what a venture capitalist does, except the amounts are much smaller, yet big enough to attract government fruit and house flies.

If you persist in this endeavor, you might wish to enter into some type of contract or loan agreement.

You can't promise profits, or the potential to make a proifit, yet it appears you've gone there, too.

To cap it all off, you want the suckers, err other players to waive their rights if this venture fails.

Here's a surprise, people aren't allowed to waive their rights or give up legal remedies, when others fail to perform.

You're creating a very toxic legal potion.

If you can't fund it, you can't run it.
So, don't start it.

 

[imthird]

Hi Army Judge

I didn't explain myself thoroughly. I never touched any money that was collected by another member of the group. That money was suppose to cover the website and other software, designs etc. The original premise was everyone was to contribute something with that 'something' either time or some skill or money...

All of this was upon my shoulders with me paying for everything and have still not got 1 dime of my output of money.
I certainly understand how you stated what you did but to say again... I have never been sent any money...

The money went to a member of this group who volunteered to collect it. The obvious reason I did not send in my part of the money was because I already spent well over the amount each of the others put in.

Upon realizing that this project was going to far more expensive than originally thought... I sent a message to each member telling how much outlay it would cost... The members did not want to add more money.

I wanted to still honor giving them a commission on sales of their products if and when I can get this project completed... And return their money (Have the other member give their money back).
This is why I wanted to have them sign a disclosure that they can not come after me if I use my own money to advance a project that began at a too low price. I was going to offer each member a percent or share but the investment would be substantially more.

Please advise from this better explained message. Never intended to rip anyone off!

Thank you very much...

 

[army judge]

Hi Army Judge

I didn't explain myself thoroughly. I never touched any money that was collected by another member of the group. That money was suppose to cover the website and other software, designs etc. The original premise was everyone was to contribute something with that 'something' either time or some skill or money...

All of this was upon my shoulders with me paying for everything and have still not got 1 dime of my output of money.
I certainly understand how you stated what you did but to say again... I have never been sent any money...

The money went to a member of this group who volunteered to collect it. The obvious reason I did not send in my part of the money was because I already spent well over the amount each of the others put in.

Upon realizing that this project was going to far more expensive than originally thought... I sent a message to each member telling how much outlay it would cost... The members did not want to add more money.

I wanted to still honor giving them a commission on sales of their products if and when I can get this project completed... And return their money (Have the other member give their money back).
This is why I wanted to have them sign a disclosure that they can not come after me if I use my own money to advance a project that began at a too low price. I was going to offer each member a percent or share but the investment would be substantially more.

Please advise from this better explained message. Never intended to rip anyone off!

Thank you very much...

Fraud does require intent as one of the five elements required to prove the crime.
That said, i wasn't accusing you, just discussing possibilities and how a layman might see it.

I have found it better not to plant a seed that could germinate later and create a bigger problem.

Your group appears to be a bunch of friends.

I'd simply have the money returned, but make sure a signed receipt is retained for everyone's protection.

Don't mention anything negative, but go on to say:
I apologize, but this thing is bigger than a breadbox, and costlier than a refrigerator.
I'll try to configure the website so you can use it in a limited way because the project is cost and time prohibitive at present.
One day in the future we can revisit and see if we can make it work.

Always avoid discussions of lawsuits and keep things friendly and personal.

Good luck...

 

[imthird]

Army Judge,

I know you were not accusing me. I also knew I didn't state my facts very well...

I thank you and greatly appreciate all you expert advice...