So this lady writes our company a check...

[zstyles]

So question in general here folks. About four months ago we were contracted to do some work in October for a customer, we signed the papers for the job and she wrote us a check paying for it in full(unusual but not uncommon) we did some consulting, prepped some things, bought supplies and are on schedule to finish the job. A few weeks ago we get an out of the blue call from what we will call "the employer"..this company was questioning some invoices that they found submitted by us. We advised them what they were for and who sent them to us. Turns out this customer (ms. X) was the sole accountant and accounts payable for a small company and had been writing checks from the company for her personal use. So now we get a call from a "receivership" who has been assigned to the case to basically "collect" all the funds that had been paid out from this account. They are 1. Taking Ms. X to court, have frozen her assets but are now asking myself and a few of my fellow contractors for all the money back..Now the word from this receiver is that this person wrote over 400k in checks for her own personal enjoyment, we are fairly small potatoes with a few thousand invested, but the works has mostly been completed other than the labor to install it. I have not spoken to an attorney as I have not received anything certified or really anything at all other than a phone call. I looked up the OSCN and its a real case but only names Ms. X in it...thoughts. Would we legally need to pay back this money MONTHS after it was gone, cleared all the banks, the company she worked for gave her the green light to write the checks(well not these but in general PAY bills) and apparently didn't do its due diligence in knowing who was working for them.

[guido911]

Curious. PM me if it hits the fan...

[zstyles]

Will do..the case is on hold for now in court, looks like for 13 more days..so we shall see. We did hear from another contractor who basically said that this "receiver" was acting as "the judge" since the judge was so busy and the money they are asking for will go into "escrow" until the court date..now I don't know about you but there is no way I am handing over a few thousand dollars because somone calls me up and asks me for it..this all makes zero sense.

I use the example. Ms X pays AT&T with a company check. AT&T processes the check, their bank clears it..the company bank Ms X works for clears it and its gone. Months later someone goes to AT&T and says "we need our money back"...not thinking that would happen..they would need to collect from Ms. X and the company is out of luck for hiring a loser embezzler...thats just my take on it...

[cannon_fodder]

I believe the test to see if you need to refund the money will be to see if you knew or should have known that this woman was doing something inappropriate.  If the services you provided made sense in light of her form of payment i think you are in the clear as an innocent third party.  If, however, she paid for her home renovation with a Nordam company check i think you could be out the money under the argument that you should have known that was not right.

In general though, i think you are an innocent third party if she paid with ambiguous funds or acted with apparent authority of the company.

/zero legal research use at your own risk warning

[heironymouspasparagus]

Keep guido on speed dial.


I sure wouldn't pay them anything.  If they don't have any better internal controls than that, it is their problem...or should be.

[zstyles]

My thoughts exactly, its very strange, this person, who he says was "appointed by the judge"(which I had never heard of) to receive the money that was "forged"...should be mailed to him and put into escrow until the trial..now I don't know about you but I kinda feel like my money is my money until I get found guilty of something....right? Has anyone here ever had experience with a "receivership"...?

Oklahoma Constitution: No person shall be compelled to give evidence which will tend to incriminate him, except as in this Constitution specifically provided

[Red Arrow]

I have been told that as an employee, I can legally bind my employer to a purchase, even if my employer does not authorize it.  Of course my employer can fire me and then take other legal action against me.  I am VERY careful when contacting potential suppliers that I am just an engineer and ANY purchases MUST go through the purchasing department.