Subcontractor Suspended Advice Required

[stormer]

Hi

This is my first post so I hope you dont me diving straight into asking for some advice.

I have recently learned that my subcontractor has been changing my invoices for the past 4 months to be paid directly into their own account. I thought the client had become bad at paying, but not so.

I have now started a fraud investigation and have told them not to return to the client as of Monday pending investigation.

Is there anything else I should be doing? What happens if they just turn up for work anyway? (I have a feeling the client has been involved and will want them onsite)

Thanks!

[northernladuk]

I am not quite understanding how your situation works. Surely you invoice the client and the sub contractor invoices you so he has no financial link to your client at all? Have I missed something here?

You have a contract with the subcon including payment schedules and the like?

[Clare@InTouch]

What are the contract terms you have in place with your client and your subcontractor?

[LisaContractorUmbrella]

More information please - how did your sub get hold of your invoices which, presumably, were sent direct to the client

[stek]

Poor sockie this!

[LisaContractorUmbrella]

Poor sockie this!

Definitely not up to usual standards

[Wanderer]

I have now started a fraud investigation and have told them not to return to the client as of Monday pending investigation.

Definitely fraud. I'd speak to them and tell them you want the money back immediately or you are going to the police to lay criminal charges.

[Zippy]

Poor sockie this!

Possibly not - let's hear him out.

If you are not on site & sending your invoices (e.g. in Word format) via email, it's not beyond the realms of possibiloty that someone has got hold of them and amended some details.
Agree the client is probably involved in some way (although I don't see how that would be to their advantage).

OP - would you expect to be paying the subcontractor yourself? You have a contract with the client?

On balance, Stek is probably right though.

[Dominic Connor]

If the facts are *exactly* as posted...

This is fraud, or to be more legally precise, theft.

You have an obligation to report this to the police, today, now.

*If* this is exactly as you say then you need to contact their bank, this comes under the Proceeds of Crime Act, which they will take very seriously and will help you protect yourself against this person transferring the money elsewhere.

Be clear that this advice assumes you know for a provable fact that they have committed a false instrument because this is kicking them in the balls and you only do that if you have the right target and can make sure you take them down and keep them there.