Legal Question in Criminal Law in Texas
Is is illegal for a 1099 to demand more money for a service he has already been paid for?
My son's diving coach does not like his 1099 contract with the city facility our team practices from. The parents pay for monthly lessons to the city and the city pays the coaches as 1099s. The city takes a 20% usage fee from the monthly lesson cost. This is an agreement between the coaches and the city which they were made aware of years ago. (FYI...Our team practices at a city facility, but we are not a function of the city.) The parents and booster club have nothing to do with the coaches' contract. However, one coach is demanding that families pay him privately to offset the 20% fee. The figures he is quoting is anywhere from $50 to $250 extra per month & he doesn't want the city to know. He wants it to be paid directly to him in addition to the monthly fees he is already earning. He is NOT providing any additional services for this money and he has threatened to not instruct our children to the best of his ability without the additional funds. Is this legal? What should we do?
We find it hard to believe he has the right to do this and he has put a financial drain on our organization. We are a 501c3 and work very hard to raise money to pay for the diving tower,equipment, and other expenses to support the children of this team. What recourse do we have?
1 Answer from Attorneys
You will be participating in a criminal fraud if you choose to participate in this scheme. Notify him of your refusal, as well as your intention to report it. Find your child another coach.
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