Loaned money to a guy, promise of great returns...

Adam900

I met a guy a long time ago, who needed a £1k investment for a project he wanted to do. I transferred £800 by bank, and £200 in cash.

The deal was, I gave him £1,000 in December 2011, and starting from March 2012, I'd receive £1,000 a month while the shop that he was using my money to invest in was running.

I've received nothing and he's dodging all my calls/txts. I know where he lives but that's about it. He doesn't answer the door to me.

What can I do? I understand taking him to small claims may work but would they understand and recognise that the debt is no longer £1k, but is indeed £7k?

It's also got to a stage where I really need the cash - how long does the process usually take?

Thanks in advance

barbarawright

What sort of business plan did this guy have that you seriously believed you would see a 1200% return on your investment in a year. Why not visit the shop and see how it's doing?

Caz3121

Adam900 wrote: »

The deal was, I gave him £1,000 in December 2011, and starting from March 2012, I'd receive £1,000 a month while the shop that he was using my money to invest in was running.

Is this documented? was this done through a solicitor?

Adam900

The shop is running. But the current group of owners (there are three, the guy who needed cash from me to fill his share, and two others) who own it but do not actively work in the shop. It's running very well, seems to be busy everyday.

If i were to go in and talk about how I want my share, the other two owners would think I'm nuts as they don't know me. Therefore, my only point of contact is the guy I invested with.

(Text removed by MSE Forum Team) Obviously you don't feel investment in small businesses can reap rewards as big as I was promised? Seems odd. Nevertheless, thanks for your valued and well thought out response.

Apples2

You have been taken for a ride, I'm struggling to believe you actually thought this offer was genuine.

Small claims, if (big if) was successful, would get you 1000 back, and not some ridiculous 7k.

Pipz

Caz3121 wrote: »

Is this documented? was this done through a solicitor?

If the answer to the above is no, then irrespective of the potential returns you've left yourself quite open to not being paid back.

opinions4u

Adam900 wrote: »

If i were to go in and talk about how I want my share, the other two owners would think I'm nuts as they don't know me.

You see, I'm not the only one who feels the need to ask the question.

(Text removed by MSE Forum Team)

Obviously you don't feel investment in small businesses can reap rewards as big as I was promised?

No, I don't. Perhaps for the owners. But never in a million years for somebody bunging a small and probably undocumented loan to a co-owner.

Nevertheless, thanks for your valued and well thought out response.

You're more than welcome.

You do realise that you have been silly, don't you?

What can I do? I understand taking him to small claims may work but would they understand and recognise that the debt is no longer £1k, but is indeed £7k?

No judge is going to award you £7k.

They could easily say that, as an investment, you knew the risks of losing money.

sandraroffey

go to the shop and see the other chaps. are they all partners in this business??? then they are all equally liable.

then bite the bullet, and walk away. put it down to experience. and the others are right: small claims or any court, will only get you back what you handed over ie. 1k. if the money is there to give it back!!!! if they have no money, then you wont get it.

and generally, if they are trying to raise money from friends, it usually means that the banks wont touch him!!!!!

miketaff1408

Take them to court. Any fair and honest judge will almost certainly award you your 7k plus probably around 20k in damages as well.

Don't listen to the other posters on here, they are just all very jealous of the fantastic return you managed to secure on your investment.


(Obviously I'm being sarcastic, but I am just typing what I thought you wanted to hear. I'm amazed at the number of posters who come on this site with a question and get all upset and narky when they don't get the replies they were expecting. The returns on the investment were ridiculous. You got tucked up by this guy. As you made a bank transfer to him, you may have an outside chance of trying to get £800 back, but the £200 cash and the pie in the sky returns are probably gone - unless you have full documentation signed and stating your investment and returns. As you have not answered previous posters about this, I take it that means it is a no. As the saying goes, a fool and his money are easily parted......)

miketaff1408

It's a shame you don't live in America, as you would stand a good chance of your case being heard on JUDGE JUDY if you applied. It would make quite an entertaining case I think, and she might have given you your original money back, but she probably would have chastised you for your naivety in expecting a £1000 investment to return £1000 EVERY month!

bengal-stripe

Adam900 wrote: »

I met a guy a long time ago, who needed a £1k investment......I'd receive £1,000 a month......debt is no longer £1k, but is indeed £7k?

Vow, how can I invest in the venture? - Even Bernie Madoff never promised such returns!!!