Did this guy just scam his company?

Via

Diamond Member
Jan 14, 2009
4,670
4
0
My washing machine broke last week, and since I'm leaving the country on Friday I desperately need to do some laundry. I went to the yellow pages and found a nice full page add for a family-owned appliance store with same day service.

When I called them a guy picked up and just said "hello?". I expected a receptionist or something, so I asked if I had the right place. He acknowledged that I did. So I described the problem to him, to which he gave me another number and told me to call him there in about an hour. I thought it was a little strange, but I was desperate to get the thing fixed so I called him back. He was at my house within 15 minutes.

The guy looked fine (he wasn't dressed in a work uniform or driving a car with logos on it), so I took him to the washing machine. He immediately diagnosed the problem and had it fixed within 20 minutes. A little plastic part had split, and he replaced it with one than had a metal reinforcement so it wouldn't break again. All in all - he was very good and professional. The charge was about $150; seemed a little high to replace a little plastic part with 15 minutes of labor but I didn't care. I got ready to write the name of the appliance place when he told me to make it out to him personally. Again - a bit odd, but he gave me a generic looking receipt so what do I care?

I've done 4 loads of laundry already and the thing works great, so he obviously knew what he was doing. My question is, just out of curiosity - did he scam the company he works for by taking a call at their place and pocketing the money himself?

Or do you think maybe he was the owner doing something off of the books so he wouldn't have to report it? Or do some companies simply work this way?
 

Phoenix86

Lifer
May 21, 2003
14,644
10
81
Probably just a really small company 1-2 employees, lots of people do that kind of repair work on the side/part time.
 

GagHalfrunt

Lifer
Apr 19, 2001
25,284
1,998
126
Sure sounds like an employee scamming, the owner wouldn't need to do all that to get it off the books.
 

Vic Vega

Diamond Member
Sep 24, 2010
4,535
4
0
An appliance guy came to your home quickly AND fixed the problem the first time for a reasonable price? What exactly is the problem here?
 

Via

Diamond Member
Jan 14, 2009
4,670
4
0
An appliance guy came to your home quickly AND fixed the problem the first time for a reasonable price? What exactly is the problem here?

Problem? who said there was a problem?

This is nothing more than a personal curiosity thing. The whole thing just seemed so odd.
 

techs

Lifer
Sep 26, 2000
28,559
4
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An appliance guy came to your home quickly AND fixed the problem the first time for a reasonable price? What exactly is the problem here?

Repairman gets to your house in 15 minutes?
31400235.jpg
 

techs

Lifer
Sep 26, 2000
28,559
4
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Who did you make the check out to? If you made it out a business than its definitely not an IRS scam. If you paid cash or made it out to an individual it could possibly be a scam. However, your deductive reasoning is pretty thin.
 

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
I've done 4 loads of laundry already and the thing works great, so he obviously knew what he was doing. My question is, just out of curiosity - did he scam the company he works for by taking a call at their place and pocketing the money himself?

99% this
 

Via

Diamond Member
Jan 14, 2009
4,670
4
0
I guess I could see how someone might get the wrong idea, so I should clarify:

I have no problem with the guy, and I'm not looking to get him in any kind of trouble. What I was wondering is if this is getting more common in the US. I know in Europe the shadow economy is pretty huge. I think I read that in a country like Greece 90% of the work is done under the table, with everyone doing whatever they have to to survive.

I've never had a repair service/transaction go like this. Maybe my thread title wasn't the greatest.
 

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
I guess I could see how someone might get the wrong idea, so I should clarify:

I have no problem with the guy, and I'm not looking to get him in any kind of trouble. What I was wondering is if this is getting more common in the US. I know in Europe the shadow economy is pretty huge. I think I read that in a country like Greece 90% of the work is done under the table, with everyone doing whatever they have to to survive.

I've never had a repair service/transaction go like this. Maybe my thread title wasn't the greatest.

So how did you pay him? Check or cash?
 

techs

Lifer
Sep 26, 2000
28,559
4
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No, he asked me to make it out to him.

Well, the way that works is that if he deposits it in his personal account and does it often he will get caught in an audit. If you have a local bank and if your bank cashes checks for people who don't have an account he could take it there and get it cashed if he wanted to avoid taxes.

I know the guy who used to own a Maytag store and shop. When he retired he did work as an independent contractor for another appliance store and had checks made out to his name. He had to give the store a certain amount of each job, so he had to show the money he took in.

Here's the answer to your question:
Maybe, maybe not. You don't have enough info to go on.
 

Zorander

Golden Member
Nov 3, 2010
1,143
1
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Sounds like the owner scamming the IRS.
My thoughts are on this.

On a less pessimistic note, it's also possible that the guy owns the company (owner name and company name don't necessarily have to be the same) and the bank account the company uses for revenue/deposit is in his own name.
 

techs

Lifer
Sep 26, 2000
28,559
4
0
Do individuals have to operate under a DBA to be legal?

edit: CPA is more likely correct, he's going to cash the check and not file as income.

He can only cash it if its on a bank that is local. He is taking a chance depositing it in his personal account because the IRS looks at how many personal checks you have deposited, and who they are from, in an audit.
 

Phoenix86

Lifer
May 21, 2003
14,644
10
81
He can only cash it if its on a bank that is local. He is taking a chance depositing it in his personal account because the IRS looks at how many personal checks you have deposited, and who they are from, in an audit.
Which is 99% likely since it's an individual writing a check to a local repair guy. Most people use local banks.
 

SKORPI0

Lifer
Jan 18, 2000
18,500
2,426
136
No you got scammed, paying $150 for a $5 part and 20 minutes of labor. :whiste: