A Palm Desert, Irvine, and Newport Beach Business Attorney’s Analysis of Misrepresentation and Fraud in Business Partnerships

In business, there is fraud from time to time. Unfortunately, we've all seen that in the Wall Street financial meltdown as the fraud of major institutions comes to light. As any partnership lawyer knows, if there are any misrepresentations made by any partners when they enter into a partnership, the entire business enterprise can and probably will turn south.

Whether a partnership is formed in Palm Springs, Newport Beach, CA, Orange County, California, Riverside, La Jolla, Carlsbad, San Diego, Anaheim, Irvine, Santa Ana, Orange, Tustin, Rancho Cucamonga, Fullerton, Riverside, Palm Desert, Indian Wells or La Quinta, the partnership must have a solid foundation of trust to survive.

The flurry of partnerships entered into in recent days by financial institutions facing bankruptcy point out the risks of entering into a partnership when one or more of the partners is less than truthful. Given the statements we have heard from financial institutions over the past year touting how fundamentally strong they were, it is easy to imagine boardroom conversations like this one between the Bankafella Trust CEO and the CEO of Bankaramaroo.

"You said you were as financially strong as a bear," Bankafella's CEO said."

Who ever heard of a bear that had any money," Bankaramaroo's CEO said. "I said I was strong as a bear. Our bank happens to be as financially weak as a church mouse. Thanks for buying us, by the way."

"That's great," Bankafella's CEO said. "Just great."

"What's to worry," the Bankaramaroo CEO said. "You're Bankafella, an American institution. We're partners now. With our internet banking clients and your assets..."

"What assets are you referring to?" the Bankafella CEO asked.

The Bankaramaroo CEO stuttered as he always did when he became nervous. "But, but your balance sheets, your Profit and Loss statements, all our due diligence..."

"You mean all that due diligence you performed just like we did when we had two days to form a partnership or lose our credit rating?" the Bankafella CEO asked.

"Now what?" the Bankaramaroo CEO asked.

"Bring in the lawyers?"

"We fired ours," the Bankaramaroo CEO said. "Couldn't pay them."

"Ours too," the Bankafella CEO said.

"Maybe we could find an attorney to sue the accountants on a contingency basis," the Bankaramaroo CEO said.

Bankafella's CEO nodded, but without any conviction. "How much money have you got in your vault?"

"The truth?" Bankaramaroo's CEO asked.

Bankafella's CEO nodded.

"We could probably scrape up enough for some fast food," the Bankaramaroo CEO said.

"And Bankafella Trust can probably pay for drinks," the Bankafella CEO said.

"What have you got in mind?" the Bankaramaroo CEO asked.

"Lets adjourn this meeting and have lunch and drinks," Bankafella's CEO said. "I have someone I think we should meet."

"Who's that?" the Bankaramaroo CEO asked.

"Our new partner," the Bankafella CEO said. "The one we need to find that won't have time to do any due diligence and who actually has some liquid assets."

If you have a corporate, business, partnership or business fraud dispute in Irvine, Orange County, La Jolla, San Diego, in the Inland Empire, Los Angeles, Palm Springs or anywhere in Southern California, we have the knowledge and resources to be your Palm Springs Business Lawyer and your Newport Beach Business Attorney. Be sure to hire a California law firm with business, corporate and fraud litigation lawyers who can serve areas such as Los Angeles, Palm Springs, Palm Desert, Anaheim, Irvine, Newport Beach, Carlsbad, Corona del Mar, Laguna Beach, Huntington Beach, Santa Ana, Rancho Cucamonga, Ontario, Fullerton, Del Mar, San Diego, Orange County, San Luis Obispo, Buena Park, La Jolla, Oxnard, Ventura, La Quinta, and Santa Barbara so you are properly represented and get the compensation you deserve.

If you have a business, corporate or fraud litigation dispute of any kind, call the Law Offices of R. Sebastian Gibson, or visit our website at http://www.SebastianGibsonLaw.com and learn how we can assist you. You can also call us to speak directly to Sebastian Gibson on the phone about your legal matter.