I invested in a "Pay day loan" company over 3 years ago. A friend of mine at work told me about his friend who was running a successful payday loan company and needed capital to grow. He told me that he had invested money in this company and was going to invest more. He also told me that he would get involved with the operations of this company, as it had so much promise. After a few weeks of this courting and a fancy spreadsheet he sent detailing how much money my investment would earn, I invested $50,000.
I told my friend that I was only really investing because I trust his judgement and that he made the company sound so good. I spoke with the owner of the company and it all sounded reasonable. A few months later, I called to get a progress report and things were going down hill. The company was being managed by a new partner, money was lost, an employee stole money, laws were changing, etc. You name it, the excuse was given to me.
I then called my friend to see what he could do and he told me to not worry. His friend was "a stand up guy" and would not let "us' down. Three years later, my contract is now over, the company is supposedly bankrupt and the owner is filing for personal bankruptcy. After a number of calls and messages, the owner finally told me that he had lost too much money on the company to pay me anything. He basically told me to take a hike and stop calling him.
I went back to my friend to get him actively involved to try and get my money back, but he was very indifferent. I told him to get together with me and sue, but he told me to do that myself as he didn't have a good case. He has the same case as I do...and my friend was never one to let a dollar slip from his fingers!!! Having gotten annoyed at this, I basically told him that he got me into this mess and he needs to get me out! He has since stopped returning my calls and messages.
In summation, I think the owner of this payday loan company defrauded me by running away with my money. One of his partners told me that he was pulling over $30,000 per month out of the company for personal use. As for my so-called friend, I think he either never really invested in the company or certainly got his money back. This is why he has no interest in suing. He coaxed me into an investment based on our friendship and trust and walked away from me.
What can I do?
I told my friend that I was only really investing because I trust his judgement and that he made the company sound so good. I spoke with the owner of the company and it all sounded reasonable. A few months later, I called to get a progress report and things were going down hill. The company was being managed by a new partner, money was lost, an employee stole money, laws were changing, etc. You name it, the excuse was given to me.
I then called my friend to see what he could do and he told me to not worry. His friend was "a stand up guy" and would not let "us' down. Three years later, my contract is now over, the company is supposedly bankrupt and the owner is filing for personal bankruptcy. After a number of calls and messages, the owner finally told me that he had lost too much money on the company to pay me anything. He basically told me to take a hike and stop calling him.
I went back to my friend to get him actively involved to try and get my money back, but he was very indifferent. I told him to get together with me and sue, but he told me to do that myself as he didn't have a good case. He has the same case as I do...and my friend was never one to let a dollar slip from his fingers!!! Having gotten annoyed at this, I basically told him that he got me into this mess and he needs to get me out! He has since stopped returning my calls and messages.
In summation, I think the owner of this payday loan company defrauded me by running away with my money. One of his partners told me that he was pulling over $30,000 per month out of the company for personal use. As for my so-called friend, I think he either never really invested in the company or certainly got his money back. This is why he has no interest in suing. He coaxed me into an investment based on our friendship and trust and walked away from me.
What can I do?
Last edited:
