Hi there. It sounds like you have been having a difficult time. You may have a legal claim against the sellers for what is called ‘misrepresentation’. This arises when a person makes a factual statement that is untrue and that statement was intended to cause another person to enter into a contract, which they actually did.

In your situation, if the sellers made false statements at the time of sale about the business and you relied on these statements in deciding to purchase the business, then you may be able to sue them for misrepresentation. The false statements may have related to any aspect of the business, such as its past financial performance, current assets and liabilities, lease or property ownership arrangements, trading name and customers, or employees. Regardless of whether the sellers made these false statements intentionally or accidentally, you may be able to sue them and obtain compensation for the loss you have suffered.

Another option you have is to report the sellers to the police for fraud. Fraud is a criminal offence where a person acts deceptively or deceitfully in a way that causes them to receive a benefit that they are not entitled to. Usually someone will suffer a loss or disadvantage as a result. If the sellers used fake documents and information to sell you the business, they may have committed fraud. Because this is a criminal offence, it is up to the police to investigate and prosecute the crime. You can report the matter to the NSW Police by contacting your local police station or visiting www.police.nsw.gov.au.