How to collect money that I’m out-of-pocket from a former employer?

UPDATED: Jan 19, 2011

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How to collect money that I’m out-of-pocket from a former employer?

I was working with a live music venue, doing booking of acts for concerts there. In September, a ticket site was setup using my Paypal account, as I was handling all costs for the event. The owner was taking forever supposedly to setup their own e-commerce account. Subsequently I asked (for weeks) to switch this over to their own account (I did not want to be responsible). There were also several shows added to the ticket site which were not my shows. On 11/27, we had a rock band at the venue. I took the money out of my account and gave it to the venue that night. Ticket sales still came in after that and then finally, about a week later, they setup their own account. I closed out the rest of my account in the beginning of December and assumed that everything was done. When I went to give all ticket money to the club, I was supposed to have a meeting with the owner and general manager. I was dealing with the GM and the owner was on the phone. The owner said to write a check to the GM and for him to go cash it right then and give him the money. The owner denies ever saying this. I gave the GM a check for $2900 and the next day he quit and took the money. A show I had no part in was cancelled 2 days later, which is where all of the money I just handed over came from. Paypal has been handling claims from people who want their money back. I have made many unsuccessful attempts to collect the money back from the owner or the general manager. The owner 2 weeks ago did say he would send me the money and we would go after the GM together but he has since ignored all emails. Collections is constantly calling me from Paypal. What action should I take from here – lawsuit; fraud/theft charges?

Asked on January 19, 2011 under Bankruptcy Law, Texas


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You need to go and seek legal help in your area.  You are going to be in a lot of trouble on this if you do not get someone in there to intercede on the PayPal account - make a phone call or better yet send a letter from their legal office - to advise that there is an investigation pending as to fraud by third parties.  It may not get you off the hook - the account is in YOUR name - but it may buy you some time.  Now, the scenario you have presented "sounds" like a business arrangement with the venue - more like you were a partner or an agent - which I know that you are not.  But you need to realize here that you do not have anything in writing and any witnesses to this all from what you have written, so it will be your word against theirs.  You need to bring all your proof to the attorney and discuss going to the DA pr Prosecutor on the matter BEFORE you are arrested here.  Good luck.

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