I know a US citizen, I'll refer to as Frank, who was approached by a friends brother, Harry, who owns a mobile data account management company in Canada.
This company currently purchases accounts at a premium rate from a third-party who can export American accounts. Harry wants to avoid this premium charge and attempts to open an American Corporation, which he can do. But when he attempts to open mobile data accounts with, for example, T-Mobile, he is unable to because this new corporation has no credit history and his Canadian history does not apply in the US.
"Essentially, I need an American to sign up a T-Mobile account because T-Mobile cannot run a credit score on Canadian businesses or individuals."
He offers Frank $10,000 if he sets up an American Corporation in his own name, and then sets up a T-Mobile account with the following requirements.
- International BES data-only
- 500MB minimum
- month-to-month plans with no phones required
Harry's plan is to have Franks name on the corporation until it has built up enough credit on its own and then Harry will be the sole owner.
My questions are:
If Frank set up this corporation and something negative were to happen, would his credit be in jeopardy?
Can Frank be held liable for anything even after the corporation is officially sold to Harry?
It seems like maybe some laws are being either dodged or blatantly broken in this case, any thoughts?