Some of you may remember me saying this: Ok, now this is whats happening. He brought up another thing to me. He's saying he really wants to start this with me because he really trusts me. He said the other dude ripped off his account for a bit of cash. He said I could setup the bank account on behalf of the company. He's thinking he MAY be able to register the company online. He said I will be an official partner and I can have 1% of the shares in the account. He also said I would have control over all of the money in the account. I will have primary account access. Does this sound legit now? Is there anyway I could get screwed over or get into any trouble doing this?
If the account is in your name then it is your liability. I would not automatically say that it is a scam as there are genuine reasons for these sorts of things however your financial security is at risk. At the end of the day it is a case of trust, do you trust them sufficiently to put everything you own in their hands? If you do, then it would still be highly recommended to get a solicitor to draw up a formal contract in terms of liabilities/ indemnity and any income/ profit sharing agreements.
*: so I guess you could issue me a checking card to the account with a daily limit or something... *: so you can monitor it ItsMrBojangles6: Well the thing is.. people are saying if you wanted to fuck me over for some reason.. my names on the account and I would go down in flames *: how would I though? *: like all of the payments are recurring credit card payments right? *: so as soon as they go through there is a hold for 7 days.. in that time you can just freeze the account if anything comes up... *: and bang you have 5k *: keep in mind if you do I will fly down there lol ItsMrBojangles6: Well they said I would be responsible for all taxes... Plus you could cash a check.. Few days later find out its fraudulant and then boom i would be responsible.. they said its an old scam *: lol old scam? *: i wont cash checks.. *: only credit cards *: the bank has a hold on the money for 7-30 days to make sure it clears the credit card company *: but honestly man ItsMrBojangles6: How does money come and go into it? Like whats that from? *: its not a problem *: you're not familiar with all of this *: so its probably a little grey He = *'s I of course am Mr. Bojangles. This was our convo earlier. Whats your take on it?
I'm going to go out on a limb here, not being a lawyer and all, but here's what immediately came to mind from your scenario: Money laundering. And, yes, it's really really illegal if the money coming into the account is tainted by illegal activity. You could be left looking at the wrong side of some metal bars. Here's the thing: there's no easy money in life and everything has risk. Usually big rewards follow big risks, so if you're seeing lots of $$ dancing in your head, think about the risk you'd have to take ... even if you didn't know it was a risk. Ignorance of what was going on will likely only help a little if this is really a money laundering scheme. Here's what I'd do to see if this is legit or not: See if you can arrange with your "partner" to talk with a local criminal attorney that you hire. My guess is that conversation will never happen, but if the deal was legit, it would happen easily. You see what I'm saying?
Here is the problem. He may be 100 percent on the level, but maybe not. Is not the conversation or even him, it is the mere fact that he is having you act as a shell for his business. It could be he is just an idiot and can't think of a legitimate way to set up a business even though he makes tons of money. Or it could be, as an extreme example, that the money is somehow related to child porn. If it were, you would be deep into criminal activity. Anyway, just make up your mind what type of risk you are willing to take.
Well he's wanting to come down and meet me. Just so I will feel more comfortable and know exactly who I'm talking to. He can set the business up but he needs someone from the USA with a bank account. Shit, I don't know. This just makes me wonder. I don't want to end up in prison.
Bullshit. No serious business needs to ask a random US citizen for help in opening a bank account. There is no reason a real business would need the help is he claiming to need - certainly not if he is making substantial sums of money. Foreign entities can open US companies and operate a US bank account, so why would he need you?
My advice is don't touch it with a bargepole. It sounds like a long con to me which works like this. First of all due some genuine business with someone which will lead to a bond of trust; then ask them to do you a favour because of certain restrictions that exist in your own country. Naturally they want to help, after all they now regard you as a friend. Perhaps rip them off straight away or better still let them make a little money first and then raise the stakes; now rip them off. Don't get sucked in; it's either a rip off or money laundering, either way you stand to lose big time. As browntwn has already pointed out there are no restrictions on Canadians opening bank accounts in the US. It's a scam.
There could still be 'semi' legitimate reasons for this scenario which may not necessarily be illegal - although I find it highly unlikely, I do concede that it can still happen. If the individual can show you solid proff of what his business actually is, and it all seems upfront (get other opinions on this from people who can see the tangible evidence), then the chances are the deal could be kosher. He may be nothing more than a porn merchant who for one reason or another doesn't want his wife or anyone else to know about, just because being a minister and a porn Lord at the same time are socially unacceptable! There are some VERY REMOTE chances it could be 'legit', but they ARE REMOTE, like what I have just suggested, and the balance looks in favor of something decidedly illegal. However, ask for details, where the money comes from, what it's for etc etc. If everything is on the 'up and up' in most regards, the individual should surely 'trust you' enough to show you this information. If they don't, then walk away.
If he is coming down, suggest that you arrange a meeting with your attorney to set the whole thing up "nice and legal, like" whilst he is in town if he agrees then you are "probably" ok, my bet is he refuses
It sounds like a scam. Because there are ways for non-residents to open up U.S. bank accounts. In addition, this guy trusts you like your his mother, yet you really don't know each other that well; you've never met face to face. Who knows what this guy is really up to. If I were to guess it would be check kiting or something of the same nature. He is already involved in the porn business so his character has been revealed; anything he is doing is probably not ethical. If I were in your shoes I would hire an attorney (like others stated), draw up a contract and make sure you couldn't be held liable for any crimes, fraud, etc. he commits -- if that is possible.
A lot of red flags here. The goal is to remove all the red flags. If you cannot remove the red flags, then you must weigh the risk and, then, take responsibility for your actions. If you're manipulated, if something goes awry, then take responsibility even if you go to prison. Because the bottom line, you are NOT required to help this guy out. Because if he is a friend, he'll understand. I read the conversation you posted (even though it's an excerpt). This guy obviously knows you are uncertain about the process. And with that, he should explain all of the positives but, most importantly, the negatives. No matter what, in every single transaction, a real life negative exists. Doesn't mean that negative can't be overcome, it's just that real dealings in business always has risk. Based on the excerpted conversation, he's a bit insensitive to your concerns (and the concerns that other's have brought up). Btw, just because he is involved in the adult entertainment industry (porn), doesn't make him a person of ill-intention. Adult industry professionals must deal with the same issues as any other business person along with dealing the with stigma of porn and the alienation from other businesses doing business with them. It's more challenging to set adult businesses up, so it kind of makes sense that an adult business professional will often need to get creative at times. Problem here is that you are dealing with some international elements just like he is dealing with the same (hence, for good or bad, he is trying to overcome). Since you are ignorant on the issues (not an insult) involved with being a partner, legal business issues, and international business, I'd be quite cautious. So with that, consult a lawyer! And with the lawyer aspect of things, you should bring that up in conversation with your future partner (yes, once you put your name on the business, even though you have indicated that you are only a percentage based partner in the business profits, you will be 100% responsible for all your actions should there be a criminal element involved). If there will be 'real' money involved in this arrangement, then your partner should NOT have a problem consulting a U.S. attorney with you in the room. Make sure you secure this attorney (or if he does, that the attorney is a real attorney that you can look up with the state bar) and see if your partner will pay for the fees. An attorney would probably only charge a few hours, anyway, and for a thousand bucks, well, that's a small investment for your piece of mind and his ability to profit off on United States of America. Lots of other elements here to consider. With the limited information I have in front of me, thus far, I'd be more than skeptical, I'd probably run considering you've only known this person a few months. I'm still wondering why he cannot set up an foreign entity when others have successfully created a foreign presence themselves (regardless of the porn element). However, unless you're in desperate need of friends (and even if you were not), losing this "friend" because you chose to avoid the potential risk for whatever professional or personal reason you chose, should not subject the friendship to turmoil. If it did, it's a friend you don't need. Besides, there are many here on this board who will befriend you no matter your choices. My advice (piggy backing on other's, as well), seek the advice of an attorney. If there is a huge profit for you; if the red flags are removed to your satisfaction; if there are no illegal issues involved; and you see this something that YOU want to partake, upon the legal advice of an attorney, go for it. No matter, good luck and best of success to you!