A man lost nearly $130,000 and was left with only $25,000 after a longtime friend drained their business accounts and hid multiple loans.
The original poster shared on the r/Money subreddit that he was describing someone he knows who entered a venture with a best friend of 25 years. OP wrote that the friend controlled the paperwork and finances, which later revealed debts and withdrawals the man never approved.
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Trust Built On Friendship
OP wrote that the two men had known each other since childhood and trusted each other deeply. They agreed to open a small business similar to a gas station or laundromat, and the man contributed most of the start-up capital.
His friend managed the financial documents, while he focused on daily operations. For months, revenue appeared steady. Later, OP wrote that delays in payments and mismatched figures raised concerns about how the books were being handled.
Whenever questions came up, the friend brushed them aside with, "Relax, man, it's handled." The turning point came when the man received a bank notice showing the business account was overdrawn.
OP wrote that the letter also listed loans taken out in the business's name — loans the man had never agreed to. The documents revealed withdrawals and debt tied to the partner's hidden actions.
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Hidden Loans, Rapid Collapse
OP wrote that the discovery forced the man to confront the debts, paperwork, and sudden collapse of the business.
The OP encouraged him to focus on stabilizing his finances and addressing the accounts tied to the unauthorized borrowing. The thread drew strong reactions from users who emphasized legal and financial steps the man could take.
One Redditor wrote, "He needs to file a civil suit against his partner and have the partner start paying back the loans. There may be criminal charges available also as a reinforcer."
Another commenter added, "Also, for OP: Telling your friend to ‘Pay what you owe' is bad advice. The primary reason and benefit for establishing a separate legal entity is to limit risk. I am not a lawyer so don’t know the nuances but said friend should NOT be paying down the debt with his personal savings. He needs to speak to an accountant and a lawyer first."
"Never never ever do business with a friend," another user wrote.
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