What to Do if Your Business Partner Commits a Crime

 Posted on June 13, 2024 in White Collar Crime

You can find yourself in a very precarious position if your business partner becomes involved in white-collar crime. You may have initially thought that he was an honest businessman who shared your goals and values. Then, a few months or even years later, you notice that something is not right. Maybe there is an accounting discrepancy, and you realize that he is reporting cash earnings that are much higher than what you know the business takes in. Or, you see that your company paid a lot less in taxes than you were expecting and you are not sure why. Once you begin to suspect that your business partner is doing something illegal, you need to take action. Ignoring the situation can open you up to criminal liability. The best person to speak to is an experienced Dallas, TX federal white-collar crimes attorney.

Could I Get in Trouble if My Business Partner Acted Alone? 

If your business partner was using your company to commit a crime, it is likely that both of you will come under federal investigation once law enforcement realizes what is going on. You could be subjected to criminal prosecution. However, if you were genuinely unaware of your business partner’s illegal actions, an attorney may be able to prove that you were not involved and are not guilty of a crime. This is why it is important to take immediate action as soon as you become aware of his wrongdoing. If you continue to work with him and do nothing about his criminal actions, you could be considered an accomplice.

A criminal defense attorney can help you take steps to protect yourself once you are aware of the crime taking place within your business. This may involve reporting your business partner so that you cannot be said to have helped him conceal his offenses.

What Does This Mean for the Future of My Company? 

You do not want to benefit financially from your business partner’s crime. In some cases, your best option is to close the business, settle any tax debts, and allow law enforcement to work. You can restart a similar business on your own or with a new and more trustworthy partner if you choose. In other cases, your business may be salvageable after your partner has been arrested and removed from his position.

Contact a Dallas County, TX Federal White Collar Crimes Lawyer 

Spencer & Associates can help business owners protect themselves after finding out that their business partner is engaged in crime. Experienced Dallas, TX financial crimes attorney Arnold Spencer can often help clients in this position avoid going to court, keeping their cases more private. Contact us at 214-385-8500 for a complimentary consultation.