Money Recieved In Error

[andyxnw]

A partner in our business was recently forced to leave the business. He took with him templates for various documents unknown to us to allow him to set up on his own without having to create any of his own templates. these are for things like invoices, purchase orders etc etc

it appears that he must have done a job for a client and sent his purchase order using our template which still had our bank account details on and we have now been paid we think by his client into our account.

Are we entitled to return this money given that he didnt have the intelligence to check this and simply left our details on ? As far as his client is aware then that would have been the back account details he would want the monies paying into !

[Sharingan]

It's not your money so return it to whoever gave it to you.

[andyxnw]

I may have agreed but the reason he was forced out of the business as he was acting fraudulently and was using the company as a cash cow to line his own pockets

[Zacs-Master]

and if you keep it, you will be acting likewise.

[Sharingan]

Just give it back, it's not yours, any other position is indefensible.

[bednobs]

i would be inclined to do nothing with it till he asks you about it (if he has the balls!) Plus i would also be inclined to hope he's done lots and lots of high value work and used your invoices.
Not that it matters, but is it a high value?

[woofgang]

I'd be returning the money to the payer, along with an honest explanation about why the payee is no longer with you.

[jackthehat]

Two wrongs don't make a right.

And you may find yourself embroiled in a court case, especially if, although you believe him to have acted fraudulently in the past, he was never charged convicted of it.

[andyxnw]

he was never convicted because we didn't want to go down the legal route for our staffs and clients well being as all that would have seriously affected the business and legal fee's would have been horrendous.

We drew a line under it and moved on but his activities had a massive effect on the business from a financial point of view and I almost feel like its retribution in some way to part paying what he embezzled !

its 30k

[jackthehat]

I'm sure you *do* feel that it's payback in some way.

However, as he has never been legally proven to have stolen/embezzled from your company, you'd have the devil's own job persuading any court that you have a moral right to the money wrongly paid to you.....if he decided to sue you.

You might find that his client might come after you, if you ex-partner reneges on any agreement between them on the grounds that he was never paid for the work.......

[Barmaid]

The only thing you know for certain is that you have received money to which you are not entitled. The person who can reclaim this is the person who paid you.

It is quite likely that when your ex partner realises he hasn't been paid, he will chase his client. His client will probably say "I paid it to xyz bank account". At that point it will become clear that there has been one almighty cockup. The client could then sue you for "money had and received" and seek restitution. The client will undoubtedly be successful.

Best thing to do is return it. The person likely to suffer is HIS client, NOT him.

It is NOT your ex partner's money, it is his client's.

[joko]

well you know its not your money, and you cant keep it - but personally i would do nothing at all.

i would not touch it, and i would not contact him or anyone and basically ignore the situation. just pretend you haven't noticed it.

wait for him to come to you and ask for it - then pretend to be shocked, and give it back to him

do not attempt to keep it or claim you have a right to it - because you don't

but nothing wrong with letting him sweat a bit, and watching him eat humble pie as he asks for it back...

[saxy_jag]

With some of the above. Hang on to the dosh until/unless he asks for it. Whatever the reasons for his leaving, the money isn't yours and if you spend it or refuse to give it back then he could sue you or even report you to the police.

If you suspect he is still up to his tricks then report it to the police yourself and possibly alert your bank.

[chrissa1]

I agree with Joko. It's his fault and stupidity that has caused this situation. Why use up some of your staff's working day sorting this out when they should be working for you.

Of course give it straight back to him when he asks for it saying, "oh, we wondered where that came from."

[joko]

i would even wind him up a bit - say you know nothing about it, and cant find anything about it, can't see any evidence, then just stall for time, promising him you are trying to find out whats happened, then say you found the paperwork in another draw or something - i mean he cant expect you to juist hand over that kind of money without thoroughly checking everything out first, can you? - let him worry haha

[pink-kittens]

you might find the last answer in this thread useful
http://www.theanswerbank.co.uk/Law/Civil/Question640467.html

[IggyB]

Just to echo the above, be very careful what you do with this money don't under any circumstances give it to your ex partner, it is not his money, if it has been paid to you incorrectly return it to the person who paid it in (the client).

[DTCwordfan]

These are two separate events legally. You are just as guilty as he is as you stand and could face action. Return it.

(2) - go and see a lawyer - first session is usually free - see what case you have for a low-cost action to block him........that would be the most apt revenge.