Credit Card Fraud - Please help!

Edwards Finance > Loans

Q. I am between a rock and a hard place! An old buddy of mine who has his own independent record label asked if I could help him out with his business. He asked if I would be his CFO "Sure!" I said. I would deposit checks into a checking account and write checks to pay for studio equipment, balance the checking account, etc. To make a long story short, he told me that he would be getting corporate credit cards for the company and that he wanted for his officer of the company to have one as well (me). One day he pops up with an Amex card embossed with the company's name on it - one for me and one for him. He assured me that it was in the company's name and that I could not be held responsible if the company we're to fold. One year later, the balance ($19,000) is now with a collection agency - and they are telling me that I am responsible because I am listed as the primary for the card. Well... I told them that the card was attained under false pretenses and that it was fraudulent. They explained that because I used the card ($400 or less) I am responsible for the entire balance! Although this guy pretended to be me when he got the cards, ran up the bill (without my knowing), and is now dodging me.... the collection agency is hounding me with threats, etc... The guy claims that he will pay and has explained to the collection agency that he will pay the full balance... but, he has pulled their leg and mine for a month now.... There are 5 cards in all totaling over $70,000. I only had knowledge of 2 totaling around $35,000. I did not sign for any of the cards... but i'm told that I'm responsible for the two because I used them. Hmmmm.... 1) Is there any way for me to get out of this 2) How long before the collection agency tries to garnish wages, seize assets, etc... 3) Bankruptcy? 4) If I put out a warrant for his arrest.. how will it ever get paid?

A. I know a couple of guys that incorporated, got credit cards, ran them up and then called the result a 'bad investment'- some $500,000. Their lawyers tell them they have no reason to worry, that the government can't get you for bad investing. I think they took bankruptcy, but the money is in the South Seas somewhere (maybe Vanuatu) and can't be recovered. There are a lot of scams around- yours doesn't sound too bad by comparison.

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