Corporate Law Partner hijacked company funds

[glokhoo74]

My husband and his colleague are equal partners in a LLC dealing with construction. Due to extreme difficulties in collecting payments from our customers, the company is suffering financially. A couple of months ago, my husband voiced his decision to quit the company. However, we couldn't pay off all our business loans and bills because we have not been paid by our customers. His partner continued working for his own personal gains while my husband totally quit working. The problem is he continuously spent company funds for his personal work. The company received a huge payment from one of our customers recently, and his partner, somehow, managed to deposit that check into an unofficial bank account without my husband's knowledge. He also did the same with another check from a customer. I thought that if a check is written out to a company, it can only be deposited into the official company business account. Opening a seperate bank account would require the signature of all the partners. My husband questioned him about the account, but he refused to give us an answer. He has even paid bills out of that account. Till this day, we don't know the status of that account. The company business loan matured 12 days ago and the bank will be repossessing the collaterals we used to acquire the loan. There was initially enough money from our customer payment to pay off that debt, but his partner refused to make the payment. We suspected that he has used the company funds for the work he performed on another job that my husband doesn't have an interest in. In our opinion, this is embezzlement in broad daylight! We still have a couple of huge bills to settle, including taxes. Since he has hijacked the company funds, is he liable to pay all the bills and taxes? What can we legally do to him to release some of the 'hijacked' funds to pay off our business loan? This is important because we use our house as collateral in that loan.