What to do if I bought a website from someone who showed me financial statements proving the site was supposedly making $9000 a month?

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What to do if I bought a website from someone who showed me financial statements proving the site was supposedly making $9000 a month?

THis was from selling banner ads and email blasts that were false. I thought I was buying a working system. Since I bought it in January no one has advertised. I contacted the people he said purchased banner ads and got a response from one company saying they didn’t know the banner was on my site. The email blasts that he set up with a minimum of $10,000 I found out would never actually work since the hosting company has a limit of 200 an hour and a max of $2000 a day. So my question is based on this do I have a case to get my money back? I live in one state and he lives in another.

Asked on June 13, 2013 under Business Law, Florida

Answers:

Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

Yes, you have a case for breach of contract and possibly for fraud.  The question will be where to file it.  Generally, the case can be brought in the place where the contract was entered into.  If this was all done over the Internet, you can certainly sue him where he lives.  It would be best to find an attorney in your state who is also admitted to practice in the state where he lives, so the attorney can file the suit there.  The amount that you sue for will be what you paid for the website business.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If someone knowingly or deliberately misrepresented--lied--to you to get you to enter into a transaction, that is fraud, and fraud can provide a basis to rescind the transaction (get your money back) and/or seek other compensation. From what you write, it would be worthwhile to consult with an attorney about the matter in more detail. The greatest obstacle for you may not be proving your entitlement to money, but collecting it: it can be difficult to collect from defendants in other states, especially if they have little assets or income, or else hide their assets and income.


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