Friend sent me $6500 through his company and told me just to send it back

Question

I started helping out my friend's business a couple of months ago as a part-time worker. He's been paying me hourly through square. Couple of days ago he told me that he'll be sending me $6500 from the company and just send it back to the company through quickpay. I'm wondering what this could possibly be for, if its for tax reasons or money laundering or anything. I'm asking here because when i asked him he just told me not to worry about it.

Edit: He sent me the $6500 as a square payroll. Dumb me tried sending $2000 to him already, which caused my bank account to be locked. I called the bank and explained the situation and they unlocked my account after telling me to just be sure he's someone I can trust.

Also, I just texted him saying I don't wanna be involved so I'll just tell my bank to reverse the transaction. His response was "Oh it's for xx's E2 visa". This xx guy is kind of a key person to the business and the closest I've been working with. He has a degree and some experience in the field. Without this guy they'll probably have to close their business. They've been telling me that his visa is expiring soon so they are working on some documents for him to get an E2 visa.

By the way this business was started by a group of friends of mine this year. I just started helping them out a few months ago while searching for a full time job. They're all new to this. If it's a crime, I don't think that they really understand what they're doing. They have a pretty good reputation in the city as well and the reason I'm using the words "business" and such without getting into detail is just my amateur attempt to be as anonymous as possible so that this post won't hurt their business in any way. I'm not trying to back them up. Crime is crime. Just wanted to share some more information.

Also I don't really need advice on whether to keep my friendship or not. I'm gonna admit he's not really a close friend of mine. But that's not really what I'm asking. I just wanna know what his exact intentions could be and what kind of trouble I could be in.

Also also I never really post in these forums so I'm sorry about my noobness.

Answer 1

The most likely result is that you'll send your "friend" their money and they will disappear forever. A couple of weeks after you've sent the money, the bank will find out that the original deposit was bogus:coming from a stolen check, a forged money order, or someone else's hacked bank account. The bank will then want their money back, and you will be on the hook for it. If you search for 'scam' on this site, you'll see a dozen different variants of this con game.

Less likely but still possible issues are embezzlement, money laundering, or tax evasion. You don't really want to play a role in any of those either.

Answer 2

It's hard to tell from what little information we have what exactly is going on, but one thing is sure: it's not normal.

Whether your "friend" is trying to cheat on taxes, trying to steal from you, trying to steal from someone else, trying to steal from the company they pretend is theirs, trying to launder money, trying to cheat a financial institution, trying to cheat a financial partner or investor is irrelevant. Something shady IS going on, there's absolute no doubt about that. There is NO legitimate business pattern which would justify this kind of back-and-forth with you in the middle.

Stop any of that immediately. Your "friend" is not your friend. It may be difficult to hear, but you've been conned. Whether you'll get in trouble because you'll be on the hook for some vanishing money or because the FBI will knock on your door is unknown, but you'll be in trouble. Don't hesitate. DO NOT talk to "your friend".

Now, you have two options:

• You report it to your bank AND the police, explaining exactly what happened and that you think something wrong is going on.
• You talk to a lawyer first as suggested by Polygorial.

Do not accept any further payments. DO NOT make any further payments. Not in any way, shape or form. No bank transfer, no credit card, most definitely no cash, no money order, no Western Union. DO NOT pay a cent.

Again, DO NOT tell your "friend" anything. The authorities may want you to continue "collaborating" with them in controlled conditions, so don't close the door on anything, just don't talk to them at all until the authorities tell you what they want you to do.

Answer 3

Another possible reason is he is writing it off as paying you while he creates a 1099 that you got paid out 6500. You will be forced to pay taxes on it if he files it. He will be able to write it off for the company.

Answer 4

This is a funds parking scheme for defrauding immigration services.

• The employee seeking a visa "invests" in an unscrupulous company with some cash sum ($100k or so?).
• The company shows that the capital was used to improve the business by appearing to spend it on contractors (OP's $6500) and other expenses.
• After the visa is secured the company claws back the money and returns it to the original employee.
• Employee gets a visa for "free."

This is a criminal enterprise. But that's not even the most worrying part to me. This part is:

If it's a crime, I don't think that they really understand what they're doing.

There are too many indicators to the contrary to believe this. The visa was about to expire. They went seeking an investor-class visa, which requires documentation of conspicuous expenditures, to retain the employee. $6500 magically shows up in your account. Now you are being asked to wire it back. This did not happen by ignorance.

• They dragged you into an immigration fraud scheme.
• Your personal account is being locked out and is most certainly on some AML radar on the bank's end.
• You seem to have caught most of the consequence for this so far.
• They didn't even have the decency to offer a cut of the money for yourself for the inconvenience or risk.

They are amateur criminals. They've already proven they aren't looking out for you, else they wouldn't be asking you to do this. What are you getting out of this that warrants your participation?

In my experience, this won't be the last time either; the requests made of you will only escalate, and the plausibility of your denials will only decrease the longer you continue to do business with them. This will end with them begging you to stash stolen goods at your grandmother's house to keep the business afloat.

Run.

Answer 5

I've been working in the information security business for some years and this is indeed a pattern that fits that of a scam. It can take many forms, like malware making it look like someone transferred money.

It can be the case that your friend is just an idiot, who is trying to be smart by trying dumb business tactics. The chances of this are very small and your main focus should be your own financial health. Like people said before: contact someone at your bank or a lawyer. They wil probabily help you contact the cops, or help you quit your part-time job, or help you transfer the money safely. Seek advise from professionals. Don't hang around with, or contact, those guys until this whole thing has been properly handeled and you can be sure it was a mistake and that it won't happen again (obviously don't contact them again if they are indeed criminals).

As an original side-note: if someone would ask me to "not worry about" 6500 bucks I would just go beserk. This is not money to be messing around with. You don't just go transfering those amounts without an agreement, it's just plain rude to command you (not ask, tell) to transfer it to somewhere else. I'm telling you this because from your story it reads like you're - in my opinion - too soft when it comes to money. It's normal to demand money-related agreements in writing. They say you can't fool an honest man, so making sure your transactions are 'honest' should not be taken lightly.

Answer 6

In addition to the other good answers suggesting that your friend might be trying to scam you, it’s also possible that they could be telling you the truth and they might not be trying to take your money (and might not even file documents requiring you to pay extra personal taxes)...but you still don’t want to be involved.

If they are indeed trying to secure an E2 visa for one of their key people, their story could hold up and you might get your money back. But in this case, their goal is presumably to manufacture capital in a way to deceive immigration authorities and inflate the key person’s actual investment in the business, or perhaps inflate the size of the business itself. This means that even if you’re getting all of your money back, you are potentially involved in immigration fraud. Stay away.

Answer 7

since you seem to trust them and they're claiming this is for a visa application it's probable that they're simply inflating your salary in order to meet the "comparable pay" requirements of the visa. as such, they will probably get away with the fraud. nonetheless, if they do get caught, you would also be implicated since you are now documented as understanding you were abetting fraud. i wouldn't expect you to see jail time, but some fines and probation would look ugly on your criminal record, possibly preventing you from getting jobs in the government and finance sector. also, i'm not a lawyer, so if convictions and fines aren't scary enough to make you stop, then you should probably ask a member of the bar if jail time would be on the table.

Answer 8

This operation has nothing to do with taxes or laundering. It is for certain a well known process to steal money from the company. A while after the two operations (you receiving money, you giving money), the fraudulent operation at the company's bank account will be uncovereed, the company's bank will ask the money back from your bank, and you'll find yourself partner in crime or much more likely victim, and you'll owe the money to your bank.

Don't accept any quick money from a company, unless you're having business with it, under a contract, stating that you're buying a product or service.

The most likely legal "friendly" transactions are between companies within the same group, or between the company and one of its owners ie., shareholder, physical person or moral person (company), involving a change or capital. If you're not a shareholder this will not happen. If this happens, you're a shalerholder, you should know it, and you'll very likely go through lawyers and miscellaneous signatures.

Of course, your "friend" is in no way an actual friend, even if you know this person well. This person is a criminal (or becoming one) or partner in crime.