What to do When Your Business Partner is Committing Fraud

In general, a partnership is designed to ensure that all parties share wins and losses equally. This includes making decisions that are for the best of all partners, not just for a single individual. In many cases, this form of business works quite well. In others, however, things can quickly sour and put the business itself at risk. If you suspect your business partner is committing fraud, it is important to act quickly. 

How can I prove fraud? 

It is important to have some kind of proof of fraud before you make an accusation. In general, you must prove that a business partner intentionally lied, that you suffered harm because of that lie, and that you relied responsibly on the lie. If you had prior knowledge that your partner was untrustworthy, the court may find that your reliance upon their lie might not have been reasonable.  

If your partnership is in writing and you have a written agreement, it might be easier to prove that fraud occurred as you have a document spelling out lawful and unlawful behavior. If you do not have a written partnership, however, don’t worry – you likely still have evidence at your disposal. Look for any kind of documentary proof you can find of your intentions when starting the partnership. This can include texts, emails, and letters.

Fraud is a civil as well as a criminal defense, and, if found guilty, your partner could face damages and jail time. It is important that you speak with an experienced attorney who is familiar with Arizona business law before you take action. They can help elaborate on the type of evidence you need to have as well as how best to move forward. 

Business relationships can be difficult to navigate, but the team at Anthony Law Group are ready to help. Reach out to us today for more information about how to move forward.