I own a small S-Corp business and have recently found out my partner
is stealing large sums of money via credit cards issued to our
company. My question is: What can I do ?  Do I have a case against
him? or does the corporation complicate this? There are no specific
terms in our
by-laws that say he can or cannot do this. We have both been using
these cards for basic business purchases but after some research I am
finding staggering differences over a 8 year period.

The money's gone and any attempt to get it get back is likely to be
costly and not necessarily productive.

The big question is do you want to stay in partnership or not?

If yes, then you must work out an equitable arrangement is made for
future purchases, by say checking each other's purchases.

The other question ... Why has he/she been allowed to get away with it for 8 years?

Not a happy situation.

Close the account asap.

Since you use the word "stealing," it sounds like you need a new partner.

The failure to specify beforehand the terms of the credit card usage
might make it very hard for you to build a case (consult a licensed
atty for legal advice, though).

The amount in question is in the hundreds of thousands. Leaving the
partnership is a given at this point but, my situation is complicated
by family ties. My partner is also my brother in law. To help you
understand my question better let me say this, I want to settle this
situation with hopefully retaining my business vs. disolving it and I
am also wondering what kind of legal case I may have. I will consult a
lawyer and dissolve the partnership in time but I am laying the ground
work out at the moment.


Thanks~

Wow Jpf1970

THAT is mega serious.

Whatever you do it is likely to blow your partnership and your family apart.

So, it boils down to deciding your priorities: Money which you have
never had that has gone, probably for good; the Business; or the
Family.

I do not envy you your choices.

But please think carefully before you consult an Attorney.

Most of these guys have subtle ways of escalating problems and a
Family Dispute can get them moving into overdrive.

What I would suggest you do is to collect all the evidence you can and
store it securely out of reach, in a safe deposit box, just in case.

Then start figuring out how to break away from your partner. When you
have sussed this out, maybe you can then suggest a Termination
Agreement ...

All this is as amicable as you can make it. After all nothing lasts for ever.

And in the Termination Agreement you include a provision for adjusting
each partner's Drawings ...

THEN when you have got it signed and sealed, you call in an Accountant
to produced a Termination Statement ...

And WOW! 

He owes you $500,000 ...

Well, how did that happen?

Oh, dear Brother-in-Law ...

How do you propose to pay me out?

Yeah sure, I'll accept $100,000 Blah, Blah, Blah ...

After all, Blood is thicker than Water stuff.

This way, you play dumb and innocent and sure you had absolutely no
idea that the miserable git had been screwing you for all these years.

Over to you.

And Good Luck!