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    3 Replies Latest reply on Nov 5, 2011 9:51 AM by mike1958

    NEED ADVISE, HELP!!!!

    mike1958 Wayfarer

      HELP!!!!!MY son wanted to borrow money from my 401k to buy a pizza franchise.I saw college paperwork that he was almost finished in a business degree.HE also had experience in take out pizza management..Now the nightmare.He bought the franchise from a cpa,who is stuck with a ridiculous lease he personally gauranteed,Igave him $35,000 down finacing payments on balance$95,000.CPA inc.us listing me CEO,son as cfo-secretary.My so called businessman son went back to cpa and lied to him and said A/C needed $44,000 replacements.he gave it back,and added to finances now$130,000.No A/C work was needed,in his pocket that went.then he came to me same story.$16,000 in his pocket.business was failing,he was also pocketing cash sales and only paying what needed to payed to stay open.HE also used and stle $45,000 i put in business checking to start business.I contacted cpa and frachise owner for help,they would,not get involved and tell me what the prolem was.My son is a theif and fraud.He left unpaid bills and a $2,000 overdraft protection in my name.my total damage is about $90,000 gone and a franchise that can barely pay its bills.the food is good,but business is bad ,between economy and the 2 previous owners who didnt care about it,also another newer franchise,same one,there business triples this one.the commercial property owner wont budge and covered himself well.CPA wants to sell again,with a $45,000 loss to me.the restaraunt has many improvements and updates ,but barely pays its bills.police say missing money is a civil matter take kid to court.Lawyer says kid frauded the cpa and he has to recover the $35,000.I WOULD HV STOPPED THE RETURN OF DOWNPAYMENT I PAYED..this kid has got away with over $70,000 and rising.Who knows if any left where he put it and says sue,i hv nothing.How can we deal with this kids arrogance?he went back to his good job and left me with this mess.HOW DO U INCREASE BUSINESS,IT HAS GOOD PIZZA AND ITALIAN FOOD.I have talked to restaraunts who gave food away at kids sports events and coupons,and none came back.ANY ADVISE help.HELP!!!!!!!!

        • Re: NEED ADVISE, HELP!!!!
          Avatar74

          Well first of all I would take your kid to court and sue for damages and once judgement is rendered then use that judgement to put liens against him which can get any pay he recieve garnished as well as tax returns, etc. Secondly start looking into marketing and sales techniques like first of all you had mentioned that their was another franchise under the same name doing 3 times the business, see what they are doing that your not and make those changes and see if that helps and who know maybe along the way you might gain some insight that may beat them to the next big marketing stratigy. Other than that keep your overhead low and use all you make and put back into the business until its in a much better position.  But I wish I could be more helpful than this, but you are lacking alot of information that could improve my advice to help your situation,

            • Re: NEED ADVISE, HELP!!!!
              mike1958 Wayfarer

              Thank you for your advise.I dont know much more about this,the previous owner who is a respected accountant,is trying to get a total number on what his damage is,who also bought this business for his kids who dumped it to us.his rent is double what it should be,it pays its bills and thats it.property owners wont budge not even with a longer lease.when previous owner bought it they signed lease with a personal gaurentee and say they cant break it although the were not provided terms till after they bought itl.the restaraunt 5 miles away is nicer inside.we spent alot of my money remodeling and the rest was lost in store and stolen.thinking my son new what he was doing,he is supposed to be 4 credits from a bachelors in finance,i aw paperwok from school,but who knows now,i trusted him,I went to an attorney who just wanted to start a battle immediately and also nows property owners, so i dont think i should use him.if business could improve 20% all would be well.we give many discounts,.I THANK YOU FOR YOUR ADVISE AND HOPEFULLY THINGS WILL CHANGE,

              • Re: NEED ADVISE, HELP!!!!
                mike1958 Wayfarer

                I    have learned alot more info on this.i put $16,000 into the business acct the bank on the phone with the acct.manager.my kid went directlt to the cuonter and withdrew $11,000.i asked bank mgr.if he didnt think this was suspicious.he said yes.he could hv called me and i could hv stopped the withdrawal or cancelled money orders,now i hv another $16,000 owed.i got a lawyer but it will cost many thousands to sue son..i also hv proof now the previous owner and accountant knew of my sons "extrvagant selfpay"from day 1 but his bills of his interest were being paid.so he said nothing as i pumped all i had into this business,and recommended i put my son out and his son would manage it and they took care of accounting.,with the business in my name "to help me".now it gets interesting,for $5,000 my atty.said to close store immidiately.we got no response frm previous owner,financer manager and c.p.a. for 6 weeks,so i closed bank acct.got a response now,c.p.a. redirected store deposits somewhere.atty. said next go to store and close it.with ownership paperwork in hand,i went to close store.as expected police came and were informed this arrangement by cpa and manager this was a gentlemens agreement to run it in my name.OK so that was telling me it was to avoid licenseing in there names and permits.gets better here,c.p.a. left vendors and taxes unpaid,there its my company,but now its his,i was never told of unpaid taxes or vendors.i was told all was o.k. and all remodeling and property in store is now his..my life savings is now gone and house is mortgaged fr this place.i cancelled permits and licenses and now in their name.my local c.p.a. says everything i was advised by this CPAwas wrong ,a conflict of interest ,and unethical and i should put a complaint into the IRS and whoever regulates CPAs in the state?(where do you do that?)and whoever he claims owned the company,at his convience,taxes were to be paid,or me notified there was no money for it.also this cpa has told vendors these payments are my resposibilit and gives them my home phone no.MY QUESTION IS WHO DO I CONTACT WHO SETS REGULATIONS ON CPAs conduct?is it the state secratary?how do i contact this authority?any help on this would be appriciated because i have been getting more help from my friends in business than my atty.