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Withdrawal of fund from Bank accounts

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My husband incorporated a Consulting company (Inc) in my name registered in Illinois in last quarter of 2013. I was 100% owner of the company.

My husband was employee of that company.

Bank account in company’s name was opened in Charlotte. Account was operated jointly with my husband for convenience.

In January 2015, due to problem in marriage, I had to go to India with my parents. I returned to USA in December 2015.  We have Filed law suit for divorce and property distribution.

My husband did not pay tax, file IRS return (federal and state) but in April/May 2015 withdrew all money during my absence and without my knowledge (though I am the 100% owner of the company) from the Bank Account in NC and closed it to fix me in IRS problem. He didn’t give any details of the company, allow company CPA to file returns etc. I had to file return, pay tax and penalty by borrowing from relative. At present, I am at great loss and trauma.

My question is that I am 100% owner of Inc and husband was employee of the company. He was allowed to operate jointly for convenience.

Can he withdraw all my money and close the account without my consent? He embezzled all money either in his account, in cash or transfer elsewhere.

Does it become a crime in law? If yes, what kind of crime and what remedy is available? Can I get my money back? If yes, how? If no, what should I Do?

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Hi @EN

 

Welcome to the community and thanks for posting! Sorry to hear about your situation with your husband. Have you retained an attorney in your divorce action? If not, you should think about going so. From your description of the facts, your husband has misappropriated funds from a business held during marriage. Your attorney could raise a breach of fiduciary duty claim, and assist you in doing the necessary formal discovery and forensic accounting to trace the missing funds.

 

If you need help finding an attorney, you can use our Lawyer Directory.

 

Best of luck and let us know if you have additional questions!

The FindLaw.com Team

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1 hour ago, EN said:

due to problem in marriage, I had to go to India with my parents.

 

It may not be relevant to your questions, but what sort of "problem in [your] marriage" would make it such that you "had to go to India with [y]our parents" for eleven months?

 

 

1 hour ago, EN said:

We have Filed law suit for divorce and property distribution.

 

"We"?  Only you or your husband could file for divorce.

 

 

1 hour ago, EN said:

My husband did not pay tax, file IRS return (federal and state) but in April/May 2015 withdrew all money during my absence and without my knowledge (though I am the 100% owner of the company) from the Bank Account in NC and closed it to fix me in IRS problem.

 

When you wrote that he "did not pay tax, file IRS return (federal and state)," are you talking about your and his personal tax returns?  Or are you talking about tax returns for the corporation that you mentioned?  Same questions about the bank account.  Personal account or corporate account?  If the latter, was he authorized to withdraw funds from the account?

 

By the way, what were you doing to attend to operations of the corporation -- including tax responsibilities -- during this time?

 

 

1 hour ago, EN said:

Can he withdraw all my money and close the account without my consent?

 

You wrote that he did do this, so it is obvious that he had that ability.  If your intent was to ask whether it was legal for him to do so, we have no way of knowing because you didn't provide that information (we obviously know nothing more about your situation than you have shared with us).

 

 

1 hour ago, EN said:

He embezzled all money either in his account, in cash or transfer elsewhere.

 

Does it become a crime in law?

 

Embezzlement is a crime.

 

 

1 hour ago, EN said:

If yes, what kind of crime and what remedy is available?

 

I don't know what you mean by "kind of crime," but you're free to report the matter to the police if you like.  If the money was embezzled from the corporation, then the corporation could sue him.

 

 

1 hour ago, EN said:

Can I get my money back?

 

Your money?  Or the corporation's money?  You have no legal standing to sue on the corporation's behalf.

 

 

1 hour ago, EN said:

what should I Do?

 

I have every reason to believe that this will wrap up with your divorce case.  If you don't have an attorney representing you, you should retain one ASAP.

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