This was posted at a RIPOFF Hotline website... I've heard a LOT of Cricket customers that have been burned by 'authorized dealers' who do the 'unauthorized' act of flashing phones from other wireless companies. However, the customer NEVER knows that they purchased a phone that was NOT manufactured for Cricket's service. However, there is hope. Cricket's system is able to determine if an ESN number from a cell phone is actually a phone manufactured for Cricket's service or not. This is what's known as a 'never been Cricket' phone, and it requires a payment full month's of service upfront payment when you activate them. Therefore, if you are asked to pay for a month of service upfront when you activate a Cricket phone, you better believe that it HAS been used before, or that it's been 'flashed for Cricket'. You're right, Cricket (as well as any other wireless company) doesn't make much off of the sales of cell phones, even though they are sold at retail price. Where dealers make their main flow of income is in activating phones - and they'll take it anyway they can, even if it means ripping the customer off!!
Funny, yes, it is a Cricket store. We're pretty upfront about the fact they aren't original cricket phones, especially because most of them say the other carrier's name right on the phone, and come without packaging.
Is it gonna be hard for you to quit and work at another store? It might be helpful for your conscience.
The scheme you have described probably constitutes federal wire fraud. You could go to federal prison, seriously. The owner of your store is defrauding his business partner, the cell phone companies. If he gets caught, you're a co-conspirator.
You know those Enron guys? This is what they were doing when they were 23. I personally probably couldn't go through w/ it. If you feel strongly enough about it and decide you'd rather get a new job, then you don't have anything to lose by letting the owner know how you feel (in a professional matter). At best he'll change the circumstances for you, or you'll be fired, in which case it doesn't matter because you wouldn't stay anyways.
Let's break this down: Only cash transactions, and no receipts are used. Every legitimate business is going to keep receipts for when they buy inventory. Only illegal operations buy inventory and do so in cash only and don't keep receipts. Any money or commissions made from selling these phones are paid out in cash, no record. Sounds like tax evasion to me since you and the employer aren't reporting the income to the federal government... Even keeping inventory of these flashed phones is to be done on paper only, kept in the safe. So if Cricket comes in to ask about this do you think the person that has access to the safe is going to just hand it to them? If they do find out and ask "Who bought these phones?" what do you think he is going to say then? No e-mails regarding these sales are to be transmitted among me or the owner or his book keeper or anything. I don't know whether or not it's because of our cell phone carrier's policy on flashing phone sales or just straight tax fraud. I mean, I've known the owner for almost two years, and trust him okay. Right. and when he is pinched he is going to give you up like the chump you are... STOP. IMMEDIATELY. WALK AWAY. DISAVOW.
You can't get in trouble if you don't know that what you are doing is part of an "illegal operation". If he never flat out said to you that this was all part of a scheme and you agreed to be apart of it, then you would be safe if anything went down. Of course this all depends if really need this job so you intend to stay and he actually does get busted. If you do plan to stay, just straight up ask him if this is illegal or not. If he says Yes, then just leave.
I'm not sure if that'd fly. Ignorance doesn't exempt you from the law. And not knowing that being paid cash without reporting it is illegal is extremely ignorant...
Okay, I've decided I'm just going to tell him I won't be a part of anything that is illegal...I can't be fired for that (legally) can I? I don't mind doing the things we're doing with the flashing (we're allowed that) but the not reporting it and lack of record keeping is surely not allowed. I don't want to leave this job (it's easy as crap and super flexible) but it's not worth being corrupted for.
Take the resident Enron expert's advice. Also, good point by Mulder about the tax evasion/not reporting income thing. That's the first thing that came to my mind actually. (I'm not familiar w/ the intricacies of phone flashing deal.)
Is this owner a franchise owner? Don't know Cricket's structure, but is there a corporate entity you can rat him out to and then get transferred to manage a different Cricket store?
It's a franchise owner. I'm not looking to rat anyone out...I don't mind on a personal level what he's doing...I just don't want to be responsible in any way for it.
If they want to fire you, they will figure out a reason to do it. Since Texas is a right to work state, you can be terminated for any reason that is not discriminatory. I honestly don't know if Texas has a whistle-blower provision though. If you were to get canned and Texas does have a whistle-blower provision and you reported the activity to a superior and then were terminated, you might be entitled to back pay in a successful lawsuit... Note: The above does not constitute legal advise nor should it be construed as such. This poor law student knows the difference between a hypothetical discussion and giving legal advise. You got legal questions? Talk to a real lawyer who charges real money.
I was thinking of it more as you could get some credit for being an honest worker and be elevated in the eyes of management, not to assuage any personal guilt.
