Is this Legal? or is it a form of Money Laundering?

Discussion in 'General Conversation' started by LadyValea1, Nov 4, 2006.

  1. LadyValea1

    LadyValea1 New Member

    Messages:
    149
    State:
    Fort Worth, Tex
    Hi, I work at this Korean owned Japanese Resturant...as a food server..today the manager say he wants us to do a favor for the owner, he says the resturant doesn't have enough cash-flow to pay the illegal workers eg. mexican dishwashers, busser, cooks and the Korean students that work as cooks, servers..
    So the legal people who get checks..he wants us to cash our checks and give him cash back that he wrote over the amount earned!
    example.. $200 pay earned + $300not earned = $500check
    cash the check and give him back the $300cash Now, when he told us that...it sounded fishy..
    I'm thinkin why do I have to give cash back?
    If they don't have a good cash-flow ...how do they have enough for the pay checks?
    Are they just creative business people?
    Is this a legal practice? How does this benefit the restaurant... Plus, he said he is doing us a favor, cuz, he is under reporting the amount of tips we make. So we are really not having to pay a lot on taxes.. like he is claiming the $300 in tips and I just give this amount back to him as cash..
    The other servers think the owner has gone over her head! she opened to many restaurants and our pay checks are always late! So we think she is hurtin for money... so is this money laundering? or what do you think? He wants this practice to start today for the next months pay check.

     
  2. Swampy

    Swampy New Member

    Messages:
    818
    State:
    Fl.
    NO! it's NOT legal! If you & the others cash those pay roll checks you will be taxed on the whole amount of the check. And your boss will walk away with the cash,that's call embezzlement. If I was you I'd start looking for a new place to work.
     

  3. vlparrish

    vlparrish New Member

    Messages:
    1,276
    State:
    Bedford, Kentucky
    Tina, I have worked for several companies that have started being late with the pay. From experience it is time to look for a job. They will usually only get worse from here. Vern
     
  4. laidbck111

    laidbck111 New Member

    Run for the hills and find another job. You will have to pay taxes one way are another. Either out of the check are at the end of the year. You may want to report her to Labor and Wages also along with the IRS and naturalization. Did she say what would happen if you refused?
     
  5. IrishO'Brady

    IrishO'Brady New Member

    Messages:
    367
    State:
    Ga
    can't be totally positive on this, but from what I understand that is illegal not only on their parts, but on yours as well. I beleive that by giving "cash back" on checks you'll be commiting tax fraudelence, because you were a knowing party.
    I'd defenitely find another job.
     
  6. Bubbakat

    Bubbakat New Member

    Messages:
    4,532
    State:
    McMinnvill
    What he is doing is stealing from a credit line account that is set up to make sure he has enough money to cover his payroll. It is very illegal and if the people that helps with this can and will be prosecuted and at the end of the year you will be taxed on the income you never received.
    He ain't doing you no favors by not reporting the tips because he has to pay an equal amount of social security on it so he is saving himself money by not reporting tips.
    I would look at him and say, To quote; Johnny paycheck, Take this job and shove it.
     
  7. Dreadnaught

    Dreadnaught New Member

    Messages:
    5,444
    State:
    Henderson,Ky
    Report this to the IRS and find yourself another job quick!!!!!!!!!!
    He is defruading the IRS and you as well. Plus he is dragging you into a fix that you can't get out of.
     
  8. buddah

    buddah New Member

    Messages:
    1,622
    State:
    Pennsylvania Wi
    Maybe Paul will chime in here, He works for the Federal Circus...um, Government...LOL :lol:
     
  9. FS Driver

    FS Driver New Member

    Messages:
    2,323
    State:
    swansea,illinoi
    very bad
    dont get twisted in to that .
     
  10. Coyote1

    Coyote1 New Member

    Messages:
    640
    State:
    Missouri
    Dear Sister Tina;
    If I was YOU, I think I would put in a call to your local IRS office and maybe even the FBI!!
    What is being asked of you is DEFINITELY WRONG! Legally and Morally! Don't get caught up in it!
    I know your smart enough to find another and Better job!!:smile2:
    I agree with all of the other Brothers and Sisters and I hope this helps you too.
    Fraternally and Sincerely,
    Coyote1
    [[[[[End of Post]]]]]
     
  11. MRR

    MRR New Member

    Messages:
    4,947
    State:
    Louisiana,Mo.
    Get out,Get out before we lose a BOC/SOC sister.He sure isn't looking out for you ,just himself. If you work in a resteraunt you won't have no trouble finding a new job.Probably won't be long before he comes up to you all and says your gonna have to wait on your money cause I'm short this week and don't have it. So get out while you can. JUST BE CAREFUL!!
     
  12. pk_powell

    pk_powell New Member

    Messages:
    3,485
    State:
    Missouri
    We don't want to lose you,don't even give a 2 week notice just leave,wash your hands of the whole deal and by all means report this to the authorities!:crazy:
     
  13. ShilohRed

    ShilohRed New Member

    Messages:
    4,339
    State:
    West Tn
    I would also say run.
    As back in 1978 i worked for a restaurant that opened a new place. Well the old place was the only thing that was keeping them going. And they asked us to do the same thing,.
    I will not write what I told them. But lets say 3 weeks later they were out of the food services.
    And all of us never did get our last paycheck.

    Good luck and watch out for you not them.

    Pete
     
  14. FishMan

    FishMan New Member

    Messages:
    2,293
    State:
    Tennessee
    Call the FBI, quick, fast, hurry. Since you made this post and have received advice that this is illegal you now have knowledge that the law is being broken. You may also want to ask yourself how would you feel if some of the folks you work with get into trouble or loose money because they didn't understand the law and you could have done something.

    Get some legal advice and you will know what to do. I am sorry you must deal with this it is so sad that so many are so willing to do wrong and think nothing about asking others to help them.

    You are smart for asking.

    Good luck
     
  15. bootshowl

    bootshowl New Member

    Messages:
    2,288
    State:
    Indiana, J
    If you are worried about your friends, call the Better Business Bureau.
    Quit first. They will be on it like a duck on a june bug, your friends will have time to shall we say relocate, and the Feds will have less probable cause to involve you. You made the call. My 2 cents. But I'm not legal aid.
     
  16. jnjmeyer

    jnjmeyer New Member

    Messages:
    28
    State:
    Richmond Heights Mo
    Tina.....I'm not a lawyer, but I think you have several things to consider. This is very, very bad business. You don't want to be any part of it.

    1. Knowledge of a felony or being a part of it puts you in a very dangerous position.
    2. Being involved in this and/or being a part of it and not reporting it, puts you in a very precarious situation. I do believe
    3. This is a public board. Now that you have let it be known to the public 'The Cat's out of the bag', so to speak.
    4. Don't know if there are any lawyers/police/government officials that are members of the BOC, but if there are then you can bet that the wheels are already in motion. If I were you, I'd be no part of this and I'd get out and get out fast. I wouldn't step my foot in the door of that place ever again.

    This is just my opinion, but I think this is big time dangerous, I may be wrong, but I think not.

    Good luck and may God watch over you.
     
  17. cattinfever999

    cattinfever999 New Member

    Messages:
    426
    State:
    KY
    I agree with JW. You cash that first check and he's got you!
     
  18. doughboy

    doughboy New Member

    Messages:
    675
    State:
    newcomerstown,ohio
    Tina DO NOT GET INVOLVED WITH THIS sounds like he is trying to bring you all down with him so call the authorites and be done with it
     
  19. Pastor E

    Pastor E New Member

    Messages:
    3,194
    State:
    Beebe AR
    I agree with the other brothers and sisters RUN don`t wait untill its to late:big_smile:
     
  20. ka_c4_boom

    ka_c4_boom New Member

    Messages:
    2,252
    State:
    Bedford,Ky
    yeah thats just wrong , id be done and im sure you will too . theres other jobs out there if you look