ethical money problem with a friend (20k)

abdada · 2017-02-22T15:26:48+00:00

Sit down with your lawyer and his lawyer, have him pay all legal fees now and if there is an issue, and hammer out a contract.

Then pick a reasonable return on your money for any high risk vehicle: 30-40% to start.

Then expect to write him off as a friend regardless of outcome.

MrEiffel · 2017-02-22T15:51:17+00:00

So basically...

"Hi buddy, could you give me all your money so I can gamble on a high risk venture (BS explanation about daddy) and if I'm lucky you get 2%. If not, not my money not my problem"

Are you fucking retarded?

Bruno-OS · 2017-02-22T15:23:19+00:00

Don't do it.

281threethreeoh8004 · 2017-02-22T15:25:11+00:00

Don't do it. No guarantee that you'll actually get your money back. It's not like you can claim fraud as you're the one initiating the transfer of funds from your own account.

trp_ocd · 2017-02-22T16:32:03+00:00

So you're going to pony up all the capital (20k) for a 100% return, but your best buddy pal friend to the end keeps 19,600 because, reasons.

snhab55 · 2017-02-22T17:13:10+00:00

Honestly this sounds like a con. If you've known him for less than 5 years, he is definitely trying to scam you. Con artists can appear to be rich, you can rent anything.

If he's so rich tell him to cash advance all his credit cards.

pellrid · 2017-02-22T15:59:12+00:00

Don't even consider it.

This dude definitely isn't a friend anyways. Move on, this dude sounds like a fucking leech. He admits to using his dad as a financial resource. Look how he is ripping off his own father. Do you think he will value you more? (Shame on his dad too, stupid way to encourage a bum)

2435734098 · 2017-02-22T19:11:07+00:00

Stay away. What the fuck? Risking 20k for pocket money? The fact you're even considering this is stupid

jupc · 2017-02-22T22:02:15+00:00

Here is one more scenario.

You give friend $20,000. Friends repays you $20,400.

Friend's father discovers the lie, and sues you and friend jointly for fraud in amount of $20,000.

Father obtains a judgment, but chooses to collects the judgment directly from you (he can do that).

You lose at least $19,600, plus attorney's fees. You have a judgment on your credit report for $20,000.

Criminal side:

Father reports the fraud to law enforcement.

You are charged and may be convicted of fraud, and/or theft by false pretenses. A felony in many jurisdictions.

You may have an arrest record, and you could be convicted and serve time, be fined. You can also pay restitution.

JinSantosAndria · 2017-02-22T15:29:31+00:00

As abdada said, only with a legally binding contract between you both. Expect the friendship to end. The question alone was a bad idea, now you know how he handles money and family, expect worse for his friends.

beachbloke · 2017-02-22T15:40:42+00:00

That dude ain't your friend boyo

lietruth · 2017-02-22T16:02:32+00:00

Everyone's telling you no, but consider this.

Negotiate a higher payout. Say 50%. He has no other options. Also know the risk. He could walk with your 20K.

vicious_armbar · 2017-02-22T16:20:34+00:00

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quicklogaccount · 2017-02-22T16:54:07+00:00

If I were his father I'd take a look at his account's history. Just saying.

Moral wise, there's only one point.

How ethical do you think it is for him to do some shit like that with his father? It is legal, but how comfortable are you with being a part of it?

As for the "he gets 19600 for doing nothing", don't be pissed about it. You SHOULD know how much your work is worth for your partners and bosses, it is valuable info to get better deals, but you're going to have a shitty time if you hate them for being able to make profit from your efforts.
Business wise, you can gamble for a higher cut, but no one else in the planet will offer you a similar deal. If he was really rich, no problems with 20k, I would just lend the money and ask for something more valuable, but not money itself. My share of the next N bills.

Past that there's the practical stuff.

How do you assess the risk? Any chances that his father forces him to invest the money or something?
What's the opportunity cost?

speed3_freak · 2017-02-22T16:58:32+00:00

60/40 with a contract. He gets $8k for doing nothing.

HookersAndBlow4ME · 2017-02-22T19:13:08+00:00

Hell-to-the-mother-fckin-NO buddy. No way is 2% worth it. Your "friend" is gonna get 100% so you'd need to at LEAST split the proceeds 50/50

Tiway22 · 2017-02-23T02:58:51+00:00

You're an idiot if you do this.

Title	ethical money problem with a friend (20k)
Author	trpethical
Upvotes	1
Comments	41
Date	February 22, 2017 3:20 PM UTC (9 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/5vj8el/ethical_money_problem_with_a_friend_20k/
Archive Link	https://theredarchive.com/r/askTRP/ethical-money-problem-with-a-friend-20k.83042 https://theredarchive.com/post/83042

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