IC employee in Loan Mod company that is doing illegal practices

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blondieward

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My jurisdiction is: Nevada

I worked for a loan modification company for 3 weeks. On hire, was not told that I would be 1099'ed. I was shocked the first day was given W9 to fill out and boss apologized for not telling me.

Immediately something wasn't right. All three of us employees were NEW within a week. Past employees were fired. The first payroll to the other 2 employees was cash in envelope.

I immediately started noticing the Boss was padding incomes with fake rentals and forging clients signatures on hardship letters to expedite the loan mod process. Most clients were Spanish speaking only, so she could be the only one who dealt with clients. I really think some clients knew what she was doing, because they were desperate to save their homes. us three decided we would do nothing to jeopardize files for clients, but she continued to. I told the other 2 employees that is probably why we were 1099'ed and we needed to protect ourselves against her criminal acts. Most files aren't being worked on because she would just let these files sit on her desk for weeks so we were delayed on working on them.

She decided to pay us a week behind which wasn't right for a 1099 employee. She set our hours as M-F 9-5pm. Not exactly a 1099 employee. We were employees not IC. FBI and the State was calling her to investigate her. She decides not to show up on payday and comes the next day to pay us but it was like pulling teeth to get her to pay us. She was totally avoiding paying us and we all waited around to get paid after work. I took a few client files home to work on, which was not against the rules that I knew of.

I went to quit and told her that as a 1099 IC she can't keep a week and withhold it plus pay us a week after payroll is due, so she was really keeping 2 wks of our pay from us. Especially not how the business was looking. Only 2 of us had withholding and one was paid up. I told her I didn't agree what she was doing with the client files, and she told me she hadn't done anything illegal to the files. I told her she knew it was wrong and I witnesses it several times. I told her I just couldn't deal with this anymore and what she was doing. I left without being paid. She says she'll pay me on the next payroll in 2 weeks. I have worked for her 3 weeks and paid only for 1 week. She screamed as I was leaving that I was in breach of my confidentiality agreement by bring the files home and emailed me that she contacted her attorney about the breach and their was a big problem with that. She told me I could not talk to anyone about her business or clients. She even told the other employees they were not to talk to me or anyone about her business.

She is a crook and I know her retaliation is just trying to protect herself.

What am I up against with being 1099 employee? This breach of contract can't be right. Can she sue me? Should I take her to small claims court? or wait to see if she pays me? which I don't think she will or has the money to pay us in the first place, that is why she holds back a week. I have contacted the FTC about the fraudulent doings and they are already investigating her. :(
 
As a 1099 employee, for tax purposes you should get a 1099 form for your taxes sometime in January 2010. You might want to find out what you need to do in case you don't get anything from her. So many Spanish speaking people are being taken advantage of because of the language barrier. There are some honest Spanish speakers trying to helping those that are trying to save their homes. Being a victim of a "loan modification" scam probably makes them a victim of predatory lending issues with their loan documents also. If she sues you she would be opening up herself to a full investigation of her business.
 
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