Can I serve as a money shelter for my brother who is facing bankruptcy?
Question Details:
My brother has recently short-sold his house and still owes 100k to his second lender and is waiting for them to sue before filing bankruptcy. He has been cashing his paychecks to avoid any papertrails so the bank won't be able to go after his money. He is planning to leave for Mexico for a few months and wants to give me his money and have me transfer it $1,000 at a time into his account to limit his visible cash supply, and avoid carrying 15k in cash. What is my legal culpability here? What if the banks have actively sued him, can I get in trouble for sheltering his cash?
What the previous answer says, plus I'll add that if your brother does this he will be committing bankruptcy fraud, a felony. Would he look good in an orange jump suit?
You would most certainly be held responsible for fraud upon the court, for sheltering the money and hiding assets. The court will find out by the trustee researching papertrails and his employment history and asking under oath where the money is going. His bankruptcy would most likely be dismissed if this is found out and it could be serious for him and for you. Do not do it.
