Question:
A friend asked me to loan him $15,000 to help him make a real estate investment. Instead he converted the money to his own use. He made a series of promises to repay me but failed. There is no loan documentation between us. I feel he committed a fraud in obtaining this money under false pretenses. Can I still sue him or have I lost out to the statute of limitations. This is in California.

Answer:
And when was the last time he promised to repay you? (The statute of limitations doesn't necessarily run from the date of the loan, but could start again if he made new promises to repay you.) Actually, the limitation statute in your state probably doesn't even start running until the loan went into default, and the question of whether he then owes you the whole amount or just the part that's in default does depend on your local state law, if none of this was put in writing.

Ideally, if the borrower hasn't already done so recently, the lender (O.P.) can get the borrower to put _in_writing_ a statement acknowledging the debt, and its amount, and promising to repay. A letter, note, email, etc. is probably sufficient. To OP: You may have other problems besides the SOL, though. You say there was no loan documentation, but was there _any_ other writing that would indicate the debt, and its purpose? Were you a party on the proposed real estate contract?

Did you pay him by check? Can you trace the source of funds you used to pay him, and trace where he spent them? How can you prove he _didn't_ spend it on real estate as you discussed? And when was he supposed to pay you back -- when he sold the investment property? When he started making income off of it? Had you discussed charging him interest? Had you discussed having you also be at risk in the investment? Maybe he will argue that you gave him the funds as your share of the investment, and the investment tanked so you both lost out.

Or he might argue that the debt he acknowledged was actually a lesser amount, if (heaven forbid) you paid him in cash. Maybe with $15k at stake, it would be worthwhile to consult a local lawyer to maximize your chances that you could actually win when you sue your "friend" even if you have a recent promise to repay. Good luck. The statute of limitations on oral contracts is two years, and on written contracts four years, from the last payment or the last time he promised to pay, whichever is later. You could argue that he stole your money, and you could argue that the statute of limitations is three years from the time you discovered or should have discovered his theft. If you can come within the statute of limitations, you could also file a lis pendens on his house when you file suit - it prevents him from selling or refinancing - because your money went into the house.

You have to sue him for a constructive trust or resulting trust to be able to do that legitimately. I'd have to read it, but it's likely that his promises to pay over the years would restart the clock, and in particular his proposal, if it could be construed as an acknowledgement that he owes you the money. It could also have been securities fraud, in which case (I think) the time period is three years from when you discovered or should have discovered it was all a sham.