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sabre104 said:
I really hope some cycling lawyer will go after Butterface pro bono with no strings attached and nail his ass to the wall. What he did was criminal.
I read it. I think I understood most of it.

Was it really criminal?

I'll agree it looks like a really dumb umping thing to do ..

it sounded like they still weren't making a profit?...

sometimes people forget to take their meds and get all scared.
 

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Nah, they were making a profit, it is just that the owner, Mr. Rouff, was probably pulling too much money out to live on. I have the same issue with some of my clients. Their business is very profitable, but they pull out $100K+ every year, even during the bad years, because that is what they need to live. Ultimately, it causes a problem with cash flow and the business struggles at times, and sometimes it goes under because it is impossible to keep the lights on.

I've read a couple of things on this, one of which was Mr. Rouff's explanation. Honestly, if Butterworth, or whatever his name is let a profitable company go down the tubes, then Mr. Rouff is entitled to compensation as a 40% owner. Ever heard of a stockholder derivitate suit. That is where the stockholders go after management (i.e., Board of Directors and Officers) for mismanagement of a company since the stockholders are the owners. Just because Mr. Rouff was a minority owner doesn't mean that Mr. Butterworth didn't owe a duty to him. Mr. Butterworth owed a duty to Mr. Rouff to run the business in a professional manner. To merely buy a majority ownership in a business and then shut it down in weeks is utterly ridiculous, especially if what Mr. Rouff writes is true.

Granted, Mr. Rouff should have had an attorney and accountant advising him from the beginning. Granted, it might not have helped, but it very well might have. Most of my clients listen to me, but there are a few that just do whatever they want no matter what I tell them (e.g., the ones with cash flow problems). Who knows where Mr. Rouff would have fallen. Money is always key to running a successful business, so he should have at least had somebody keeping the books up to date, and he should have at least had enough cash flow that he wasn't post dating checks, which really doesn't work anyway because the date on checks is merely for record keeping purposes and a check can be cashed as soon as it is written regardless of the date on it, with a couple of exceptions (e.g., stale checks).

In the end, I hope that Rouff gets this together because I raced the Robert Fulton Road Race and 2 cats at the Great Grandview Crit last year and had a great time, even while cracking a Zipp 303 on the pothole strewn Grandview crit. The only way these races could have been better would have been to have Joe Jefferson MCing them.
 
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