Forums: Discussions for entrepreneurs and small business.

I have a company I that I started about a year ago. I have 6 investors that are interested in the company. I have a very comprehensive business plan and an equity partner.

The problem: When I was a minor I was arrested and put in California Youth Authority for a homicide crime. I was released when I was 22. Because I was 14 when it happened I do not have a criminal record. I turned my life around and now have a wife and kids and a BA.

My partner is not aware of this and I am sure that if the investors do their due diligence
they may somehow find out about it. Should I inform my partner now and let him know? Should I assume that no one will find out and push forward?

My fear is that if I tell them about it they will not do business with me and I may even lose my business partner. I am not worried about how I will be judged, this is strictly about the success of my business which several investors have expressed interest in.

If I do tell them (which Im leaning towards, because its the honest thing to do), when is the right time?

Please give me your opinion on this matter.

Thanks,

Mike

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It shouldn`t matter if you disclose it. Look at Bill Ayers, who likely did a lot worse than you ever did in the past. Nobody cares. All you have to do is be upfront about it, because if it worries YOU, then it`s going to affect your life, your happiness, and the way you feel about being comfortable.

I`ve found, throughout my life, that I`d much rather be comfortable that everyone I`m involved with knows what`s what, and there aren`t any later-day surprises. I`d rather start off on the right foot, even if it means someone chooses not go pursue a relationship of some kind. And money relationships are hard enough, without introducing possible future problems.

Since you were a minor when you got in trouble I would assume that your records are sealed, so it would be tough for anybody outside of law enforcement to find out about this. On the other hand, we all know how sloppy the government works at times, so I am not sure if I would rely on this. Have you thought about consulting an attorney?

Other than that I would agree with Craig. Everybody has a past and my feeling is that you should stand up for it. You obviously committed a homicide when you were a child and haven’t gotten in trouble ever since. As far as I am concerned you’d stand a far better chance I’d do business with you than someone who has a history of fraud or property crimes.

I’m also assuming that you know your partner’s character traits. Don’t you have a gut feeling how he’d react if you’d come clean?

I guess no matter how you slice and dice this, this will be tough call.

I hope this helps & good luck.


Mark



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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
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If telling about your past is going to raise everyone up then consider it.  If telling them you`ll possibly be shun, consider it.  We all have past discretion some moral, some legal, and some ethical.  Who you are today is what you`re asking someone to believe in.  That to me is what I sell each time I speak to someone.  Who I am, is who I am.

Good luck. 

 


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RAW

This is just my opinion, probably doesn`t help much but personally, if I were an investor or a partner, I would be damn impressed with your story. You took responsibility for what you did, paid your dues, and proceeded to pull yourself up from a place many people never do. I think it speaks volumes of your ability to make things happen and I would have even more confidence partnering with you in a business venture. 

I would disclose it as from a legal standpoint, it more than likely will come up, unless you have had your records sealed in a legal proceeding.  Sounds like your investors are great people and have put their faith in your business capabilities.  I have seen and counseled more clients from a legal perspective on deals that have gone bad that clearly could have been avoiding early on.  Once investors lose faith in the person and their credibility, it is extremely difficult, and a alot of times impossible, to regain the trust.

I like the answers. I do not think you have to say anything. You turned your life around.

I can really sympathize with you situation. Nearly everyone has something that may not be up to par or they feel may tarnish them in some way. I think it would wise to let your partner now about it, tell him/her the details, and be ready to take questions from investors in the event that it comes up. This does not need to be told to investors, but you need to be ready in case they have looked into it.



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Frank Dobner
Director - Sales & Marketing
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