Need help. I have investors, but I also have a shady past.

mikemitchmikemitch subscriber Posts: 1
edited November 2008 in Business Planning
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

Comments

  • stonesledgestonesledge subscriber Posts: 8
    If this does not to be disclosed, then why bring it up? I lived on the streets at age 14 and would steal food to eat where I worked and eat it where no one would see, I would not tell people that just to tell them. I also was in a situation and was read my rights at age 17 and really didn`t do anything but because I was there I could of been sent to jail so I lied and got out of it...but what good what that do telling people that. The past is the past and as you said you are in a different place. In a situation that you did something wrong and stole money from a company etc...that may be relevant. But I don`t think what you are stating is. Hey in life some times we make choices that are not right and sometimes like in my case I did it out of survival. I am not saying what you did is okay, nor do I know exactly what you did but are you going to live the rest of your life putting that on your back? If they ask, then yes, you should be honest, otherwise keep it closed.
     
    Erin
    stonesledge11/20/2008 6:07 PM
  • raw280raw280 subscriber Posts: 0
    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. 
     
  • RetiredMember5RetiredMember5 subscriber Posts: 0
    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.
  • christineleechristinelee subscriber Posts: 1
    I like the answers. I do not think you have to say anything. You turned your life around.
  • Frank630Frank630 subscriber Posts: 2
    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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