How do I distribute funds when one of the parties provides a social security number that is not his?

By PETER A. DAVIDSON

QUESTION:  I am getting ready to close my receivership and distribute the funds in the estate to the two parties.  I have just learned that the Social Security number one of the parties gave me is not his.  What should I do?

 

ANSWER:  As a receiver you are the agent of the court.  As such, you must not be a party to any conduct that may not be legal.  You should bring this issue to the court’s attention by filing a request for instructions as to what you should do with the funds under your custody and whether you should notify the IRS and FTB about what is clearly a violation of the law by one of the parties to the case.  Like with all the requests for instructions, you should give the court a recommendation as to how you think you should be instructed.  The use of a false Social Security number is a crime. See 42 U.S.C. §408(a)(7)(B).

 

This blog is intended to discuss current trends in receivership law and practice.  It should not be construed as representing advice on specific, individual legal matters, but rather as an overview of the subject discussed. Your questions and comments are always welcome. Please do not hesitate to contact me at pdavidson@ecjlaw.com or (310) 281-6363 to further discuss this blog or to answer any questions.

Peter A. Davidson is a Partner of Ervin Cohen & Jessup LLP.  His practice includes all aspects of receivership and bankruptcy law.  He also acts as a receiver, conservator and monitor in state and federal court.