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  1. #1
    Join Date
    Feb 2017
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    2

    Default Unauthorized Opening of Corporations Bank Account

    My question involves business law in the state of: New York.

    I am the sole owner of a construction company, but for the past year, I haven't used the business because I got a job with a union. I have come to find out that my father (who is in personal and business bankruptcy) has been working under my company name and his wife opened a bank account under my corporations name.

    I have a very poor relationship with these people so "talking it out" is not an option.

    I am afraid to close the company down because then I would be stuck with the large taxes that would need to be paid on the work they have done.

    Please help, I'm not sure what to do. Am I entities to the money in the unauthorized bank account she opened? Any criminal charges I am able to press?

  2. #2
    Join Date
    Nov 2013
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    6,498

    Default Re: Unauthorized Opening of Corporations Bank Account

    Quote Quoting Penny09
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    I have come to find out that my father (who is in personal and business bankruptcy) has been working under my company name and his wife opened a bank account under my corporations name. ?
    What do you mean that he is working under your company name. Is he using your NY contractor license? Did you give him permission to use it? Do you have a license and is it current? Is this NY state or NYC?

    How did you find out about the bank account? Have you gone to the bank and review the account application? A corporate account requires your corporate seal along with a corporate resolution signed by the officer(s).

    Quote Quoting Penny09
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    I am afraid to close the company down because then I would be stuck with the large taxes that would need to be paid on the work they have done.?
    What taxes are you referring to, corporate, withholding, sales tax? Those taxes would be due whether you close the business or not. The question is who will be responsible to pay them.

    Quote Quoting Penny09
    View Post
    Please help, I'm not sure what to do. Am I entities to the money in the unauthorized bank account she opened? Any criminal charges I am able to press?
    If you try to claim the money in the account, you become a party the fraud. So, at this point the answer is no, you shouldn't touch it. There are potentially several crimes here and all of them serious. And not to mention that you may be caught up in the mess including the bankruptcy .

    You either consult an attorney about your options or you go to the police and report this and let the chips fall where they will.

    We have a tax attorney here that can address the tax issues if he cares to respond.

  3. #3
    Join Date
    Mar 2013
    Posts
    17,272

    Default Re: Unauthorized Opening of Corporations Bank Account

    Quote Quoting Penny09
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    Please help, I'm not sure what to do.
    You need to get in front of this right NOW as you are vulnerable to having anything your father does come back on you.

    If you aren't clear on how that works, study up on "apparent authority."

    https://en.wikipedia.org/wiki/Apparent_authority

    I suggest you call the bank and report the fraudulent account. Follow up in writing to the appropriate department and let the bank handle whatever comes next.

    I also suggest you call the state licensing department and report the unauthorized use of your license. Follow that up in writing, too.

  4. #4
    Join Date
    Feb 2017
    Posts
    2

    Default Re: Unauthorized Opening of Corporations Bank Account

    He is working under my license without my permission outside of NYC. We found out about the bank account through someone who does work with him. That person took a picture of the bank card for us and it has the fathers name and company name on the card.

    The corporate seal is kept at the CPAs office and I'm assuming that is how they were able to open the corporate account. Is this considered identity theft?

    Thank you. This is very helpful and concerning at the same times.

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