VIC VCAT - Proving a Company MYOB File has not been Altered?

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Dee11

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29 June 2017
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I am in a legal dispute (VCAT) with my former partner. Long story but outline is as follows. It was originally agreed I would loan funds to my former partner for the purposes of starting & maintaining a business in the early stages. It was verbally agreed all funds were loans & that he would re-pay those loans by way of regular weekly repayments.

All amounts loaned & all repayments were input to the business accounting software (ie MYOB). After a period of 5+yrs, my former partner decided he no longer wanted me to be a part of the business, changed all locks to prevent me from going back to collect my personal belongings from the business etc. At this point in time there was still a large sum of money owed to me but he has refused to pay back & is now saying i never loaned him money.

I have evidence by way of an email (in paper form) that was sent to my brother from my ex while I was within the business which stated amounts I had forwarded to my ex as well as (MYOB software) back-ups on CD disc which shows amounts loaned to my ex as well as the weekly repayments he made back to me (both cash & bank deposits) which are clearly marked 'loan repayments'.

He is now claiming I have fabricated all records (even though they are the exact same files he sent to his accountant at the time) & that I had never loaned him money hence refuses to pay back what he owes me (tens of thousands). His refusal to pay back the loans has financially destroyed me.

I guess my question is: How can I prove that those back-up files (on CD) have not been fabricated or modified & that all entries are in fact correct? I know I can check within the 'properties' tab which shows the creation & modified dates etc which i believe proves my case, but how do I prove it for VCAT purposes?? Does that make any sense?

Thanks in advance, any assistance would be greatly appreciated.
 

Rod

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Depends on how much effort and money you want to spend. You can get a forensic accountant to verify the information, provide a report and be available as a witness.

Or take in your own accountant with a report.

Or provide your own evidence and swear to it's authenticity.
 
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Dee11

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Depends on how much effort and money you want to spend. You can get a forensic accountant to verify the information, provide a report and be available as a witness.

Or take in your own accountant with a report.

Or provide your own evidence and swear to it's authenticity.

Thanks for the reply :) I'm prepared for the effort as this is my life savings. My issue is I'm financially destroyed because of this & my only income now is a disability pension hence I couldn't possibly afford a forensic accountant or afford to pay an accountant to appear as a witness. He is aware i'm now broke due to what he's done & is no doubt counting on me not being able to financially afford to pay for witnesses to appear etc which in effect, he gets away with it...

I could swear to authenticity but he is a very smooth liar & my word would only equate to 'he said, she said'. When my ex changed all the locks & refused to give back my belongings, it included all the paperwork I had which would have proven everything (i guess that's prob why he retained my belongings). MYOB records show everything, they were reconciled at the time with his bank accounts (by a book-keeper he employed) & used for his tax purposes so I really don't know how he can dispute these amounts accusing me of fabricating them.

He has stated that I did all the book-work within the business yet MYOB records show he in fact paid book-keepers & accountants. From what I've experienced & see daily on TV is that the legal system is only there to protect the crims. Honesty & facts don't seem to count :(
 

Rod

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Looks like you need to put in the effort. Get as many MYOB and bank records as you can.

Life partner or business partner or both?

If life partner how long was the relationship, when did it end, and have you been to family court for a property split?
 
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Rob Legat - SBPL

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There may be an easier way. If the MYOB records you have align with the bank records for both accounts, VCAT may be prepared to accept their correctness. Especially if the bank statements include notations about 'loan repayments'. Also the fact that there were transfers to the business account, and subsequent transfers back, would tend to indicate a loan and repayment arrangement. I would think that the VCAT member would be inclined to stop listening to your ex if he starts claiming the MYOB file and the bank statements are forgeries.
 
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Dee11

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My ex was a BF or approx 10yrs (not de facto) & I was considered a 'silent' business partner for his tax purposes. I was locked out of the business as soon as the business turned a profit & I was due (promised) to be officially added as an equal partner in the business. Unfortunately I don't have many of my own banking records, receipts or written agreements as almost all my paperwork proving everything was retained by my ex (ie: he refused to return my belongings within the business).

The loan repayments he made back to me are recorded as 'loan repayment' within MYOB - how he recorded them in his business bank account I don't know as I never had access to the business bank accounts & don't have any of his statements..

I am 100% certain tho that MYOB records would match his bank accounts exactly as MYOB was reconciled with those bank accounts on a monthly basis. I have all back-ups of MYOB records going back to the start of the business & when i right click on them it shows the dates created & dates modified etc.. which show they haven't been tampered with or modified in any way since the date of creation...

These are the very same records used by his accountant for BAS etc over a number of years... He says I have falsified these records & is saying I did all the book-keeping within the business even tho he paid book-keepers to do the work. I also have a letter from his solicitor acknowledging there was a business relationship between us (which my ex is suddenly now denying) & also states that my ex is prepared to make to make pmt to me of amts due to me inc loans + interest on those loans & a percentage of business profits however my ex is now denying i ever loaned him money despite this solicitor letter stating otherwise.

There is also an email which he put his name to & from the business email account where he stated amounts I had forwarded to him & also assets I sold to fund the business yet he is now denying he wrote it & accusing me of it. In other words he is denying everything regardless of what proof i have & accusing me of falsifying or modifying every document. I believe this is because he knows the burden of proof is on me & will costs me a fortune to prove any of it by way of expert witnesses etc (he is very aware i have zero money to be able to do this).

I can't believe how someone can tell so many lies & somehow get away with it even with what little proof I've got.... Can he be forced to produce his accounting, bank & tax records etc which would absolutely prove all the figures & entries are all correct?

Thanks so much for those replying to my posts - it is so very appreciated.
 

Rod

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A 10 year relationship probably counts as a de facto relationship if other people knew about it, though I don't have enough information to reliably comment.

You go with your information and a request for his bank records. Let VCAT sort out his evidence in the first instance.

BTW I'm surprised VCAT is hearing the case. They normally don't get involved in private contract disputes.
 

Rob Legat - SBPL

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With all of what you're saying, I don't think a tribunal member will have a hard time inferring that there was a loan arrangement between you.

As for your bank records, approach your bank and request statements. It may cost you a small fee, but you'll have them and if they show notations indicating loan transactions, they'll be very useful.

Rod, I'm not completely sure of VCAT's extent of jurisdiction, but they will consider private contracts and, in particular, loan contracts. I've put a couple of consumer credit matters through them where the lender is seeking enforcement against the borrower and have not had a problem.
 

Dee11

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Rod, we didn't live together therefore it wasn't defacto...& thanks Rob Legat, I do have some bank statements (only around 6) & can't request older ones as my accounts were closed a while back due to defaulting on pmts (caused by my ex not repaying me to enable me to pay those pmts).

The statements I do have show pmts from the business account back to me & I have a pmt receipt clearly showing 'loan to' him as well as other transactions for goods which benefited the business (all match with MYOB) & were claimed by my ex to reduce his tax.

As to jurisdiction, loans were also made to my ex from my mother (a smaller amt that I'm owed) which he also refused to repay back to her once i was locked out of the business. She went through VCAT & judgement was awarded in her favor. I have filed with VCAT & gone through the directions hearing already so I can't see how VCAT could turn around now & say it's not within their jurisdiction. My biggest issue is proving the MYOB records I have are not false records & haven't be falsified.

I am dumbfounded tho as to why the formal letter I have from his solicitor stating the business relationship has now ceased & my ex is willing to pay monies owed to me + interest + percentage of profits etc.. would not be proof enough. Apparently it's not...

Again, thank you so very much :)
 

Rod

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It's great VCAT is taking on your case and they are unlikely to withdraw now it has been accepted and had the first hearing.

If I was your ex I would have objected to them hearing the matter. VCAT has no common law jurisdiction.

but they will consider private contracts and, in particular, loan contracts.

I think they are limited to loan contracts as in most instances it becomes a 'consumer' dispute. Private contracts are governed by common law/equity and therefore outside the jurisdiction of VCAT.
 
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