Performed acts of fraud and cheating, breached fiduciary duties
Back in 2010 I've started a private limited company after resigning from my job. I've invested almost all the start up expenses out of my pocket and by means of loans and by pledging gold etc. At that point of time my family wanted my younger brother to join me in this venture as they were worried about his unstable jobs and make him a mature are responsible person and in some other matters. As he is my brother I gave him 50% of the share on the verbal guarantee that he will bring in investment right after starting company and postponed indefinitely saying many reasons and later when there was an argument in family when he divulged to me in front of families that he had more than enough money with him at the time and he deliberately avoided investing in business as business involves risk and if startup fails he will not lose his savings and he is smart like that and he left job only after feeling that the company is stable . My parents knew this all along about his intentions and they too stood by him because of my "crazy ideas of starting a private limited company which was not digestible for them ". I did give him 50% share on good faith while starting company without him paying up capital and made him part of company as money will reach my parents home through him while working with me.
Years passed and company started to make good profits and grown substantially from a small start up distribution company against all odds and turmoil's as explained later. I was against and restricted my brother from some unethical and illegal intensions and practices such as selling stocks without tax invoices and writing off as damages and evading taxes for gaining unfair incomes as some of other distributors in the same line of business and not supporting for paying bribes or to provide unfair benefits for easy and spontaneous growth of business to the area sales manager of the company which my company is a authorized distributor .
This manager had some issues as I amicably told him that I will not be able to support him in unfair bribe for support of spontaneous growth under his good graces and mostly because my accounts are in perfect tracks and no cash transactions are entertained and hence no black money is generated and cannot set aside or write of any amount for this purpose, and I offered my humble apologies for not being able to help him in this case. Later this manager started creating troubles for me and company in many manners and had some issues which got escalated which were created out because of aforementioned issues. And we had to go through a phase of uncertainty and despair stage of business but to survive and become the second best distributor in our state despite being a new business and surviving trough troubled waters with great amount of hard and true work.
But my brother was growing irritated to me because he was not having any freedom for wrong doings or any misappropriation. Later I understood that as my brother is an opportunist he joined up with this manager and started to have some unfair relations which resulted in the most grave outcome which I became aware very recently.
My brother and his friend started a partnership firm where my brother has a high chances to be a important share holder or may be indirectly (Benami) involved since last one year (early 2015). Their company obtained a authorized distribution with the support of the area manager from the same company and becoming a dangerous competition while my brother is still in my company in a capacity of director. And my company or me did not know about this in for a very long time. Within this time my brother was actually working in that partnership firm against the good faith and duties towards company and that brother owes to my company. To my surprise and as per my checks, all this time all the important, strategic, financial, clientele and confidential mail and files with information were being accessed from the computers and being downloaded from the IP address belonging to the competition company started by my brother and his friend secretly, unfairly and without permission from the present company and this explained why there was a downfall in growth and billing for the past year.
My brother arranged contact numbers in a manner with his number being in the first contact with listings with some of the online marketing platforms and hijacked almost all prospective clients to his competition partnership firm. This was confirmed by a leading online business listing platforms representative recently. And after changing this I've started to get leads as before.
Lately my brother started to take out stock from my go down frequently without records, any invoices or dispatch notes as per rules by providing some false and lame reasons to the staffs present. This stock was reaching the competition partnership firm when they were out of stock as they are not able to purchase and hold huge stocks like my company. Most of them were returned later at odd times when the competitive partnership firm was able to acquire some stocks. This fraud has helped them to grow at the cost of my company because new distribution companies are not given any credit and stock were billed on cash and carry basis. The confirmation of stocks reaching their office was witnessed by my staff couple of times and he did not understand this at that point time and he realized recently that was a competition firm and was a grave act of fraud and cheating .
My brother was taking off large fuel and travel expenses without proper bills while 98 % of his effort and time was spent over in the partnership firm that they have created.
Now it seems that his intentions is to secure his own partnership firm with his friend at the cost of the my private limited company and to kill off once they have archived their stability with partnership firm with the help of that area manager of the company that we are distributors. This manager was aware of all this all along and is a key person in facilitating all the help needed to the unfair establishment and survival of the partnership firm created by my brother and his friend.
This manager and brother started to kill off my company by creating financial situations by restricting flow of stocks to my company by not honoring recent purchase order and invoicing with very low stock of critical stock items and invoicing huge quantities of non essential stock which does not have market and will expire in no time.
Very recently found out that my brother and my friend is trying to dispose some properties of his friend to secure some huge capital which is very essential to transfer all my existing clients and to prepare for purchasing hue stocks compared to their nascent stage, this information was gathered by my friends by posing as potential buyers for the online listing they have put up to dispose properties.
Till now my brother may some doubts of my understanding of these situations as I became strictly monitoring all aspect of business and stocks. May be he may not be aware or assuming that his secret endeavors are safe and I may not have a full understanding and he is mistaken.
As his intention is to kill of this company for his unfair gains by means of fraud, cheating and unlawful means, I pray for a solution to tackle this situation so that the company stays alive and me, my depended families and my staffs and to provide due justice which may seem fit. As per some research I came to know that there are provisions under law to initiate criminal legal actions against the partnership firm and even my brother. I came to understand that my brother took unfair advantage to my company, performed acts of fraud and cheating, also breached fiduciary duties to the private limited company and his friends being a known and informed accomplices in this.
Please provide me with solutions, suggestions and guidance for saving my company and depended souls. My depended families will be financial destroyed including my child's future .
Desperately awaiting for hope,