Can I knowingly destroy potentially sensitive or confidential virtual property, data or information?

I entered into a virtual handshake agreement to do some computer hosting. I set up a bunch (24) of VMs (Virtual Machines) on a shared server with other legitimate clients. The client paid 2 months and stopped paying. Eventually client turned out to be a total fraud/scam and now I am left with 24 virtual computers sitting on shared servers that I run my business with. Can I delete/destroy the VMs and be done with it and walk away? I am in no way concerned with civil liabilities from former client however former client engaged with many states (State AG & Treasurer’s offices, etc.). I don’t want to risk a state AG’s office coming after me for destroying data or for returning a virtual computer to another state with shared data on it. Do I need to disclose this? I cannot simply return the virtual servers to the named clients because I have no idea exactly what (if any) data is on said servers. It could be shared therefore I cannot give state A information with states A, B and C on it.

This former client really put me out. I cannot afford to hire an attorney to facilitate this on my behalf. Can I say nothing, destroy everything and walk away?

Traffic Lawyer Richard Simon’s Answer

The Real question is, Can you afford not to hire an attorney? IF this guy was a large scam artist, how do you know the information etc on these computers is not part of that same scam. You could be destroying evidence or considered a conspirator in said crime. You need to find counsel and soon.