Quote:
Originally Posted by ts3
Typically, they just don't get their money back.
Anthony's story reminds me of a solar builder who was growing too fast for his own good - from 0 to 30+ employees in like 3 years - in what was basically a construction business. The guy started spending as if there was no tomorrow. Sponsoring the local major league hockey team was just one example. Another year down the road it all exploded. The business had increasingly and fraudulently used prepayments specifically tied to (and in many cases held in escrow for) the many new projects to fulfill the fewer old contracts. As soon as growth slowed down the scheme collapsed. The owner/CEO went to jail for fraudulent bankruptcy, declared bankruptcy on a personal level, and customers lost single digit millions.
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These things work swell on the way up but not so good on the way down
My Gestor (accountant practice) was doing the same, she had been spending faster than the money coming in . She purchased a new office which cost more than anticipated and supporting her useless kids
so was taking money from one client to reimburse others , as she was filing tax returns and not paying social security etc
It's far more complicated here in Spain. She owes me around 15k in unpaid taxes etc
It came to light when she told me I owed 20k hacienda tax on a house purchase.
I assumed it was legit but cross checked and found it should have been under 2k. When questioned she blamed the lawyer who messed up..(apparently it was always either the tax office or lawyer who was to blame.)
I used her because the previous business owner had dealt with her for 15 years. He only found out he'd been done when he went to sign on for his pension at the tax office and they said "who are you?"
Several others lost money including charities.
Her house has been embargoed and a court case has been filed but because the system takes years to process here continues to practice..
Happens in all walks of life tbf
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