I loaned $120,000 to a New York C Corporation, which does all business through a wholly-owned Limited Company in the UK. In exchange, I have first rights to the technology (held by the UK subsidiary), which may now be worth this amount (plus interest) under seasoned management, and I was granted a contractual right as a board observer. The two directors of the New York C Corporation have run out of funds through mismanagement of the business. My loans are in default and have been for several months. The directors have ignored all requests for payment, they have never held a board meeting, a shareholders' meeting or issued a financial report. They have largely ignored my requests for information since last October, when I began to ask questions that highlighted the problems in the business. In the few attempts they made to communicate with me since that time, their answers have been threatening and duplicitous. Prior to that time, their answers were often duplicitous or simply evasive. Immediately after one of my loans was made to the company, one director used part of the proceeds to repay a loan that he had made to the company (commingling?). Some events that should have been disclosed to prospective investors were not, including the "shady" history of one of the directors. That history led to his recent dismissal at a brokerage firm when it was uncovered by them.
What recourse is open to me? I am considering all moral, legal and practical options, including placing liens on the business, forcing it into involuntary bankruptcy, filing civil suits against the directors, and talking with a DA about filing criminal actions.
Thank you.
What recourse is open to me? I am considering all moral, legal and practical options, including placing liens on the business, forcing it into involuntary bankruptcy, filing civil suits against the directors, and talking with a DA about filing criminal actions.
Thank you.
