Rigamarole
10-30-2006, 02:53 PM
Background: A few months ago I met a fellow who I've been working with - he was starting an online book selling business, and hired me to help manage the business (only employee).
He is from India and not a citizen (but he has a legal permit to live, study, and work here AFAIK). But because of this fact apparently he could not open a business bank account on his own. So I opened one jointly with him as an authorized signatory on the account - I was a little wary of doing this of course so I had him sign a letter stating that I wouldn't be held personally responsible for any fees/balance etc. on the account should it ever become overdrawn.
I worked for him a few hours a week for several months on the business, but I am now focusing on my other job and no longer working for him. The account is still open (I plan to close it but he needs to change the direct deposit information from the other businesses that have been paying the company first). And here's the issue - he recently asked me to authorize a wire transfer from the account to the book supplier in India to pay for the books.
The transfer will be not-insignificant (several thousand $). I felt rather nervous when I got an e-mail asking me to do this - I replied that I would prefer it if he moved the funds into a personal account of his (remember, since I am authorized signatory on the business account I would have to authorize a transfer from that account) and paid them from there, because I don't want to be on the hook for the amount owed to the supplier if for some reason the wire transfer doesn't go through properly. (I have not found him to be untrustworthy, but I don't trust him 100%. Not that I trust anyone 100%) The money is all his, as I was paid on an hourly basis and have already been paid for my work with him. He replied:
About your liability, you have never beein liable for anything - as the company's owner, I am the one liable if the wire transfer doesn't go through. I have sent wire transfers numerous times to India and have never had a problem - its just like sending a wire transfer to a bank here in the US. Infact, if you want, I can give a written letter absolving you of any and all responsibility for the wire transfer.
I would have done the transfer through my account but the invoice is in the name of (Company name) and the payment will have to be made through that account. Its standard legal procedure.
It seems to me like they (the supplier) wouldn't care what account they get paid from as long as they get paid. Is that second statement BS? What would happen if, theoretically, I authorized this transfer and then he pulled all the funds from the account? Should I just refuse to do this and let him find another way to pay them?
He is from India and not a citizen (but he has a legal permit to live, study, and work here AFAIK). But because of this fact apparently he could not open a business bank account on his own. So I opened one jointly with him as an authorized signatory on the account - I was a little wary of doing this of course so I had him sign a letter stating that I wouldn't be held personally responsible for any fees/balance etc. on the account should it ever become overdrawn.
I worked for him a few hours a week for several months on the business, but I am now focusing on my other job and no longer working for him. The account is still open (I plan to close it but he needs to change the direct deposit information from the other businesses that have been paying the company first). And here's the issue - he recently asked me to authorize a wire transfer from the account to the book supplier in India to pay for the books.
The transfer will be not-insignificant (several thousand $). I felt rather nervous when I got an e-mail asking me to do this - I replied that I would prefer it if he moved the funds into a personal account of his (remember, since I am authorized signatory on the business account I would have to authorize a transfer from that account) and paid them from there, because I don't want to be on the hook for the amount owed to the supplier if for some reason the wire transfer doesn't go through properly. (I have not found him to be untrustworthy, but I don't trust him 100%. Not that I trust anyone 100%) The money is all his, as I was paid on an hourly basis and have already been paid for my work with him. He replied:
About your liability, you have never beein liable for anything - as the company's owner, I am the one liable if the wire transfer doesn't go through. I have sent wire transfers numerous times to India and have never had a problem - its just like sending a wire transfer to a bank here in the US. Infact, if you want, I can give a written letter absolving you of any and all responsibility for the wire transfer.
I would have done the transfer through my account but the invoice is in the name of (Company name) and the payment will have to be made through that account. Its standard legal procedure.
It seems to me like they (the supplier) wouldn't care what account they get paid from as long as they get paid. Is that second statement BS? What would happen if, theoretically, I authorized this transfer and then he pulled all the funds from the account? Should I just refuse to do this and let him find another way to pay them?