Is this embezzlement

[judds]

What is the name of your state? Texas

I am in a partnership agreement with 2 other people. One of whom is divorced and is being sued for more child support. To reduce his income to which he has to report he is writing checks to a company he has set up as a vender for consulting fee's. He invoices our company for a certain $ ammount for consulting that never happens. It is a real company with a tax id# but they never do any consulting. Is this illegal? More importantly can our company be held responsible and can I as a partner in the company be held responsible. All the partners have knowledge of this and have just assumed it was ok, but I am a little concerned.

Thanks,

 

[JETX]

"Is this illegal?"
*** Yes.

"can our company be held responsible and can I as a partner in the company be held responsible."
*** Since this fraud is being done with your knowledge and assistance, yes.

Additionally, there are all types of potential tax and accounting fraud potentials in your actions.