I own a painting company and I just got a contract with a large residential building. I was able to sub-contract out the work to the current painting contractor that was already there ("xyz painting"). However, two months into our contract I just found out that it turns out the building manager gave us the contract because we are licensed and insured properly, and it turns out "xyz painting" is not. Now the residential building's upper management who pays us is asking my company to help them out and make it seem like they've been paying our company all year (Jan 2018 - to date) by having us write them a check for all payments made to the unlicensed "xyz painting" in 2018, and they will then write a check for the same full amount back to us in the name of my company so that it is on their records that they have been paying a properly licensed and insured company this whole year. They have called this a "check-swap" and have requested that we engage in this transaction with them in order to help them out. It seems if we help them and do the swap we will get to continue working there, but if not they will most likely not give us work. My question is: Is this "check swap" legal?
If it feels bad or suspicious then don’t do it. You are at risk of losing a lot of money — better to lose the future job work in my opinion
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