If this doesn't belong here, feel free to move it. This is my first story and centers on my brother. Apologies for the length.
My brother worked as the accountant/controller for a company back home. The company had recently filed for bankruptcy and he'd worked hard with suppliers to get their supplies and keep things running. After several months, the company was doing well.
The owner decided that he needed an office manager, so chose someone we will call Bob. Bob didn't particularly like my brother and actively began working my brother against the owner. This usually entailed him telling the owner about problems my brother was causing. The owner would get all torqued out of shape, come down on my brother, my brother would explain what was going on and the owner would see the light and all would be well. The owner really was a good guy, but he couldn't grasp the concept that Bob was trying to get my brother out of the office.
Finally, my brother had had enough and found another job.
Less than a year later he gets a call from the owner asking him to come, look over the books. Apparently they had a $4,000 check bounce even though they'd just had a huge deposit and the owner couldn't figure out why.
So my brother does a little forensic accounting and finds out that Bob has withdrawn $148,000 in the previous six months. This includes checks made out to himself that he cashed mostly at the local casino.
Needless to say, Bob no longer had a job. The owner offered my brother his position back. After some deliberation, he took the job even though this put the company in a very precarious position.
As they're trying to figure out how to deal with the missing $148,000 they consult a lawyer who says that while they can sue Bob, and they'd win, the money is gone and they won't be getting it back. My brother thinks about that and then asks a question which makes the lawyer and owner laugh.
He went back to the office and issued a 1099 to Bob for $148,000. He said that they may not get their money back, but the government was going to get theirs. The kicker is that this occurred over two calendar years so Bob didn't hit the FICA limit on either year meaning that the entire amount was taxable.
He doesn't know what happened to Bob, but company wasn't able to overcome the loss. They tried many cost saving measures. My brother even told them that they couldn't afford to pay his salary and stay in business so he was 'fired' and went in a couple of hours a week and did their books, but ultimately the company was forced to cease operations.
My brother worked as the accountant/controller for a company back home. The company had recently filed for bankruptcy and he'd worked hard with suppliers to get their supplies and keep things running. After several months, the company was doing well.
The owner decided that he needed an office manager, so chose someone we will call Bob. Bob didn't particularly like my brother and actively began working my brother against the owner. This usually entailed him telling the owner about problems my brother was causing. The owner would get all torqued out of shape, come down on my brother, my brother would explain what was going on and the owner would see the light and all would be well. The owner really was a good guy, but he couldn't grasp the concept that Bob was trying to get my brother out of the office.
Finally, my brother had had enough and found another job.
Less than a year later he gets a call from the owner asking him to come, look over the books. Apparently they had a $4,000 check bounce even though they'd just had a huge deposit and the owner couldn't figure out why.
So my brother does a little forensic accounting and finds out that Bob has withdrawn $148,000 in the previous six months. This includes checks made out to himself that he cashed mostly at the local casino.
Needless to say, Bob no longer had a job. The owner offered my brother his position back. After some deliberation, he took the job even though this put the company in a very precarious position.
As they're trying to figure out how to deal with the missing $148,000 they consult a lawyer who says that while they can sue Bob, and they'd win, the money is gone and they won't be getting it back. My brother thinks about that and then asks a question which makes the lawyer and owner laugh.
He went back to the office and issued a 1099 to Bob for $148,000. He said that they may not get their money back, but the government was going to get theirs. The kicker is that this occurred over two calendar years so Bob didn't hit the FICA limit on either year meaning that the entire amount was taxable.
He doesn't know what happened to Bob, but company wasn't able to overcome the loss. They tried many cost saving measures. My brother even told them that they couldn't afford to pay his salary and stay in business so he was 'fired' and went in a couple of hours a week and did their books, but ultimately the company was forced to cease operations.
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