Barry Jackson approched myself and another couple to invest in a tack and feed store. He present a plan and payback on our investment in one year. The plan was, since he didn't have the funds to invest he would manage the business as his contribution.
We all agreed and he was to create an operating agreement. The business was aquired with our funds and started. It was doing very well. When asked about the operating agreement he would put it off. The other couple didn't like the arrangenets and decided to get out and sold thier interest to another couple. When that couple, friends of Barry, found out I was questioning the business practices, they decided to say that the investment was a personal loan to Barry.
I started questioning the integrity of the deal and reviewed the bank statements. There were several large transfers of money in/out of the business accounts. When asked to explain, Barry had the locks changed and we were told we were no longer allowed back in the store. He stated he was the managing partner and had that right. He also stated that he was now two thirds owner.
I contacted an Attorney that basically said he couldn't do much without the operating agreement.
The latest word is he is working another couple right now for another investment into his business in another location.
Meanwhile there is several hundred thousands in inventory and equipment that my money built up.
Barry has personally been approched and he has made written offers to purchase our share but only with an exchange in inventory at a less then fair market value.
I have also learned that he has done simular dealings in the past and maybe some of the money transfers in/out of our accounts were due to a judgement againest him from the IRS because of another one of his past money dealings with another poor sole where he didn't pay a tax bill for the client but rather used thier money for another one of his deals.
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