Hi there. It sounds like you are in a difficult situation. You should revisit the terms of the contract governing your supply arrangement with your customer. If this contract has been entered into by your customer’s business (and not the GM in his personal capacity), then the customer will be liable to pay for the goods you supplied, even though they were ordered by the GM for improper purposes. If the GM was acting outside the scope of his employment when he made the purchases, then this is a matter to be resolved between your customer’s business and its former GM.

If your customer is withholding or delaying payment for goods you have already supplied, contrary to your normal trading terms, then the customer may be in breach of the contract. If the contract specifies what happens when a party is in breach of the contract (e.g. issue warning letters or default notices, charge late fees, etc) then you should follow the terms of the contract. You may also want to consider sending a letter of demand to your customer outlining the details of the goods you have supplied but not yet received payment for. The letter should specify a due date for payment. If the customer still refuses to pay, you have the option of commencing legal proceedings to recover the money owed to you.

Regarding the police investigation, based on the information you provided, it is unlikely that you would be prevented from recovering the money owed to you simply because the police are investigating allegations of fraud by the former GM. Speaking to a lawyer will help you understand how your rights are affected by the police investigation.