Moonlighting / Compliance
Hi everyone
Posting anon since I'm fairly active in the RE forum; considering the topic and related concerns. This is something I am taking very seriously so I am going to do my best to provide as much back story as possible while not putting too much info out there
I work in an originations role in CRE - Think IS/Debt brokerage. Been in this particular field within CRE for 3 years and have another 3 of experience as an analyst at another shop.
I've been talking with an old mentor of mine about starting our own business for a number of years, really since I got into the business about about 6 years ago. He runs a brokerage shop that sells/lends on a completely unrelated product type relative to what I've been working on for the last 5 years or so. It is still within CRE, but completely different product type, region, and client base. There is absolutely no overlap whatsoever between what he does and what I do now
The venture would really compliment his current business well, and one that I could very easily run on the side without interfering with my day to day. My ownership in the new business would be held within another holding company I own, for which I am obviously not the agent of service. There's no way to determine through public filings that I am involved. We've also fully vetted this from a legal standpoint, meaning we are basically ready to go across all facets, except for if/where my name will be.
While I personally don't consider it a conflict of interest, my HR team would definitely disagree.
I can't think of any way they could find out. My attorney told me that the only potential way he can think of, outside of me doxxing myself, would involve payroll taxes relating to how my current employer compensates me. We have a way of circumventing this risk as well
So this brings me to my question.... How would my current employer ever find out?
periodical background check on company directorships? this is where we need HR to give some good advice for once in their life
Shhhhhh with helping HR in any way. Nonsense
But thx for the comment, that's a good idea... I'll have to find a way to cover that
They can find filings and your name in any public records? Companies does it periodically (every year or twice a year I believe)
So Businesses/HR Departments do regular searches through all registered business entities and cross reference the names they find against their own employee base? That seems extremely intensive. How would they know it is me versus another person with the same John Smith name? Assuming there was nothing available except a name on a LLC.
Plenty of people have LLCs/Corporations/Partnerships for investments and other business opportunities outside of their normal 9-5. Are all of these people providing their entity information to HR?
Honestly curious, I have absolutely no idea how any of this would be found, which is the reason for the post
Some HR won't but I know that all of large firms uses a private detective-ish of some sort to filter and dig through a person before hiring. My old bosses all had "backyards" of businesses that benefitted from the information they can get their hands on at work. But there is just no time or anyone who would want to go after them and file for information leakage nor even knowing about it (except me - public database, asking some sources who works in the industry they are transacting in, just simply search and estimate market share of certain niche industry they are in, you can sniff it out by asking some relevant but hintful questions to get them to splurt it.)
I hear you, and was somewhat familiar with this prior to making this thread, but still don't really know how they'd find out.
Let's say I own Red LLC and my partner owns Blue LLC. Each LLC is a 50% member of Purple LLC. Purple LLC is doing business under an FBA and my partner who owns Blue LLC is the face of the business
Unless they somehow get their hands on company financials, I don't know how this would appear any different on an HR Screening than any other holding company that an employee owns. There's got to be some way of structuring this so that it can work out in the way I'm hoping. Plenty of executives have financial holdings across all kinds of industries that they don't work in day to day
Maybe I just need a better attorney
I get that it is a private business, right?. But if you aren't do anything wrong why would you be afraid of HR finding out? Or are you worried they will fire you due to or in suspicion of lack of work performance?
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