Can I sue for unpaid earnings as 1099?

[lectrician]

What is the name of your state (only U.S. law)? I am in New Jersey - employer/company in California.

For nearly four years, I worked as a 1099 for a company in California. I worked remotely, from New Jersey, and provided advertising services. I had very limited contact with the company. I communicated with a company representative via Skype only. I was paid bi-weekly by direct deposit.

I provided approximately $25K worth of unpaid services to the company. The last check (approx $5k) they deposited to my account bounced, costing me a $12 fee.

A couple of months ago, the company closed permanently in response to an ongoing Federal investigation for fraud. News articles I have read allege that the owner(s) of the company made millions of dollars operating a scam under multiple business names for several years.

About one week prior to the shut-down, the FBI executed a search warrant at the company's headquarters. I remember the day of this event. Several remote workers noticed there was a problem with the company server and contacted our assigned company representative. The rep told us that they were experiencing "computer server issues that would be resolved in the morning" and that we should continue to work. We were not told about the FBI raid that had occurred a few hours earlier. A week later, the company closed the doors permanently.

I am wondering what my options are.

Surely, my name is going to be discovered by investigators when they dig into the company's financial records. Obviously, this concerns me - even though I had no involvement in running the scam. As a 1099, I provided my services just as the phone company provided telephone service, the water company provided water and the landlord provided an office location... should I be worried?

Can I sue the company / the owner(s) to be paid for my services? If so, can I sue them from NJ or must the case be settled in California?

Should I reach out to the FBI for any reason - perhaps to identify myself, inform them of my involvement and/or this issue?

 

[defendmyself]

What is the name of your state (only U.S. law)? I am in New Jersey - employer/company in California.

For nearly four years, I worked as a 1099 for a company in California. I worked remotely, from New Jersey, and provided advertising services. I had very limited contact with the company. I communicated with a company representative via Skype only. I was paid bi-weekly by direct deposit.

I provided approximately $25K worth of unpaid services to the company. The last check (approx $5k) they deposited to my account bounced, costing me a $12 fee.

A couple of months ago, the company closed permanently in response to an ongoing Federal investigation for fraud. News articles I have read allege that the owner(s) of the company made millions of dollars operating a scam under multiple business names for several years.

About one week prior to the shut-down, the FBI executed a search warrant at the company's headquarters. I remember the day of this event. Several remote workers noticed there was a problem with the company server and contacted our assigned company representative. The rep told us that they were experiencing "computer server issues that would be resolved in the morning" and that we should continue to work. We were not told about the FBI raid that had occurred a few hours earlier. A week later, the company closed the doors permanently.

I am wondering what my options are.

Surely, my name is going to be discovered by investigators when they dig into the company's financial records. Obviously, this concerns me - even though I had no involvement in running the scam. As a 1099, I provided my services just as the phone company provided telephone service, the water company provided water and the landlord provided an office location... should I be worried?

Can I sue the company / the owner(s) to be paid for my services? If so, can I sue them from NJ or must the case be settled in California?

Should I reach out to the FBI for any reason - perhaps to identify myself, inform them of my involvement and/or this issue?

I would definetly try, you have to stay on top of the situation. Do you know who the name of the owner is of the company? Can you go to the State of California Secretary of State and do a business search and request all the info that is public record on the company. That is where I would start. Technially you are a victim but unsure if the FBI is the proper agency to help you recoup any money. Contact the other remote vendors and see if you can band together somehow. Perhaps one of you lives in California.

 

[FlyingRon]

You certainly can indicate to whoever is prosecuting this case that you have a claim. However, for that to make a difference would mean that there has to be sufficient assets after conviction to think about restitution. Most likely, as you were told the previous time you asked about this, this is going to bankruptcy. You are an unsecured creditor with pretty low priority and you'll get in line with everybody else owed money (the taxman, secured creditors, and employees come ahead of you). You've not stated the nature of the work, but if you could have been mischaracturized as an contractor and were in fact an employee, you can get two things out of fixing that: one, wages come ahead of unsecured debts, and two, you get a tiny break on the taxes on what you did get paid.