Legal Question in Business Law in Texas

Kickback through a third party

Just found myself in a pickle, but it appears that I may be in the clear.

Own a small staffing company and was recently approached my a ''friend'' with a large staffing opportunity at a big client. they had an in and got us on the vendor list. The fee for this was a percentage of work done. I have since be told that this cut woul dneed to be in cash and that a portion woul be going to the exec on the inside.

I did limited research and have believe that if I move forward with this payment arrangement, I could be liable for a host of charges (money laundering, tax fraud, conspieracy to committ corprate bribery and possible a RICO or organized crime charge) is my thought process right? I thought that the payment to a third party would be on the up and up if I could document it, however with this new info, the deal is starting to get a slimey feel to it and has te potential to comprimise the integrity of the firm and put me in the hot seat for the charges listed. Can someone give me an opinion.


Asked on 4/01/07, 12:48 am

2 Answers from Attorneys

Peter Bradie Bradie, Bradie & Bradie

Re: Kickback through a third party

Walk away from the "deal" before you get seriously burned. Money laundering doesn't apply, but the rest may.

Any time a deal has to be in cash, that means the deal is "off the books" and there's potential tax liability.

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Answered on 4/01/07, 3:07 pm

Johm Smith tom's

Re: Kickback through a third party

It sounds improper if the "friend" works for the company that needs staffing. You could always take the work and not pay explaining that you'll need confirmation from the "friend's" employer that the payment would be allowed or just back out of it now. Paying cash is the biggest issue; I would avoid that for many reasons. Consult an attorney who can go over the relevant policies and laws to give you a solid basis for not paying if you don't walk away. I assume you're not worried these people will harm you or anyone else if you don't pay; you better know that, too.

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Answered on 4/01/07, 3:54 pm

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