Investor Says He Is Not Liable after Selling His Company

princeofpounds

OK thanks for a bit more detail.

So, would I be right in assuming that what seems to have happened is that he put the money in a limited company. This limited company was supposedly financing refurbishments, potentially of property he himself owns as an individual (or were sold from the company to him as an individual).

This company is then sold to a third party, who then wound it up without contacting any creditors.

As already stated, the first question to ask is whether you lent the money to the man or the company.

It's good that you seem to have evidence of communication about this investment. That could probably help a lawyer pin it down. But it will be hard for us on a forum to do so.

If you lent money to the man, chances of recovery are very high as a property owner.

As a company, it is less so, but the way things have proceeded it's very likely you will be able to nail the directors somehow, and he may have been a director.

maximumme

The Limited company had nothing to do with refurbishments. Is was a property management company. It had nothing to do with my friends property refub business. It was a sideline that he ran totally by himself to build up a portfolio, which he still has today, including the properties my money went towards refurbishing. Since he sold the limited company, he continues to add properties and businesses to his portfolio.
I am guessing that the person who purchased his limited company knew nothing about his refurbishment business.
I was led to believe I was lending the money to the man, not he limited company.

thenudeone

If you can't afford a solicitor then you could simply issue a court claim against the individual, which costs a few hundred pounds, get all your paperwork together and, if necessary, present your case to the court.

It may be worth arranging a fixed fee interview with a solicitor to get a realistic assessment of the prospects first.

You might be able to find a no win no fee solicitor willing to take it on.

greenface

How long ago did you give him the money ? You do need to get real good legal advice if you have any hope of getting anything back ..

Ifts

tendon wrote: »

It may be worth arranging a fixed fee interview with a solicitor to get a realistic assessment of the prospects first.

Also some solicitor firms provide a free half hour consultation.

OP should look to see if they can get a free consultation with a reputable law firm in their local area, if nothing more than finding out what the realistic chances are of getting any money back.

atush

I agree, I would seek a solicitor's advice, and see if they would proceed no win no fee as soon as possible.


As the first thing you need to ascertain (and they will tell you) is if you should initiate court proceedings, or instead go to the police to register a complaint for Fraud first before initiating proceedings.

maximumme

Thanks for all of your advice. I have spoken to a no win no fee solicitor and sent them copies of all of the documentation I have. We will wait and see what they advise.

atush

I must add, and I am sorry if this offends you, what you were thinking of?

you have no job, and you spent apparently all of your money on a scheme run by a 'friend' w/o a proper written contract.

Astounding.

But I do wish you good luck getting it back. and if the solicitor can't be bothered, go ahead to the police. If that doesn't work, county court.

maximumme

Thanks atush, non taken. I sometimes wonder that myself, quite often actually. I have known the guy for a long long time, and I had no reason to mistrust him. I had witnessed his previous successful investments. He promised to wipe out all of my debts, and more. Unfortunately he got very greedy. You think you know someone........

Thrugelmir

maximumme wrote: »

I had witnessed his previous successful investments. He promised to wipe out all of my debts, and more. Unfortunately he got very greedy. You think you know someone........

I believe the contrary. You paid off the debts of someone who was extremely unsuccessful.