Stock Grant Error

[Hierophant]

Something strange has just happened to me so I need some advice.

My company handed out blocks of stock (full stock, not options) as a bonus of sorts for a successful project. I sold the whole block to cover the taxes only to find out later that they "made a mistake". They're telling me they gave me somebody else's shares in addition to my own. They also want me to just hand over the sales proceeds in excess of what they had intended to give me.

So my question is this: Can I keep the money? -or- Do I have to give the money back?

My take on this is that the money is mine free and clear and I don't own the company squat diddle.

Does anybody know the correct answer to this or should I go see a lawyer?

Thanks in advance.

 

[Hierophant]

Okay, now that I'm a bit more relaxed, I suppose it might help if I was more specific.

I recieved a block of stock as a bonus from my employer. The brokerage company they used made an error and put more shares of stock into my account than my employer had paid for. Since I had to come up with the taxes on all of this I was forced to sell all of these shares. A week later I get a call from the broker telling me that I was given too many shares. First they tried to put a stop payment on the check but it had already been cashed. So then they asked me very politely to send them a check for the sale of the shares that my employer didn't pay for.

This raises a number of concerns for me. First off, there's the matter of tax records. They tell me that they'll "correct" my 1099 to reflect only the shares I was supposed to have recieved. I'm not sure that they will actually do that, or that it is even legal to do something like that. Technically, I sold the shares from my account so I'm responsible for the taxes. Can they alter tax documents like that on a whim?

Also, since they've already paid me the money doesn't that make it mine? If it got this far, I don't owe them ****. Or do I?

Basically I'm asking if anyone out there has seen brokers screw the pooch like this before and what legal ground I'm standing on. Should I just give it back, get a lawyer, or just keep it and tell them to go get ****ed?

Thanks in advance,

Hierophant

 

[Some Random Guy]

If you try to keep the money you will be sued, fired and end up being out far more money in the long run. Its not your money - its a clerical error that the business has every right to correct.

The brokerage firm is willing fix your 1099 to show the actual money you receive after giving the money back. That's not illegal - its accurately reporting the funds you received and sold. The broker will be responsible fo rth eother shares that are being removed from yuor 1099. But don't count on them being perfect. Make sure you double check the 1099 info when you receive it next year.