Escrow and Paymaster Services
Black & LoBello offers unparalleled Paymaster and Escrow services to individuals, corporations, and companies, both domestic and international. Black & LoBello has extensive experience in various transactions involving areas such as real estate, commodities, banking transactions, oil, jet fuel, gold (Au), and diamond transactions. Black & LoBello answers the questions of where, when, and how parties are paid in a commodities transaction. All such transactions must be compliant with federal authorities, including the United States Treasury Department and Homeland Security. We assist and work with individuals and companies to facilitate prompt payment of their fees within the guidelines of governmental authorities and regulations.
What is a Paymaster, and what services do we provide?
The dedicated Paymaster Attorney acts as a trusted, arms-length, neutral third party that facilitates the payment of large sums of money by receiving funds from any transaction between two or more separate individuals or entities. The Paymaster holds the funds in Escrow, and disburses the funds, as directed, to all principals and associates in a transaction. This procedure protects all parties to the Escrow transaction. The use of a Paymaster can be one of the most effective means for intermediaries to insure they smoothly and securely receive the fees, compensation, or commissions that have been contractually agreed upon by the parties. The Paymaster drafts a multi-lateral Escrow Agreement, maintains an escrow account, and disburses funds in accordance with the Escrow Agreement. The Paymaster reconciles the escrow account and fills out the necessary IRS and/or international paperwork, and is paid a small commission for the services rendered. The Paymaster is not party to the transaction, and does not know the exact time that the transaction will close. Part of the Paymaster’s job is to insure that the payment has been transferred into escrow, then to disburse the funds in accordance with the parties’ directions. All parties seeking to engage Black & LoBello as their Paymaster and/or Escrow provider must provide the following information:
- A copy of valid driver’s license and/or passport
- U.S. citizens and U.S. resident aliens: Complete IRS form W-9
- For non-U.S. citizens or U.S. resident aliens: Completed IRS form W-8(BEN)
- Copy of all transactional documents, including payment agreement
- Recorded report of pending transactions in which Black & LoBello is involved
Note: Black & LoBello will only make payments and disbursements in the form of Federal wire transfers or SWIFTs. We will not render payments in the form of cash, money orders, or bank checks. Paymaster dispersals may be made to single or multiple accounts, both domestically and internationally.
Does a Paymaster have to be an attorney?
Paymasters do not have to be attorneys. However, attorneys often serve in the role of Paymaster because they are often able to use Attorney’s Trust Accounts (also known as IOLTA accounts) for short-term escrow transactions. These Trust Accounts can be monitored by the State Bar of Nevada, which provides an additional measure of security for handling large sums of money. The Paymaster is subject to heavy penalties as licensed attorneys and may even be disbarred if any funds are misappropriated. Black & LoBello does not provide legal services for any of the Paymaster clients, since it may be considered a conflict of interest, unless all parties to the transaction agree in writing.
The Paymaster does not withhold taxes. The individual or company is solely responsible for paying any taxes due.
Payments to other people from one commission
The Paymaster can pay several people out of a party’s commission, as long as all the details and banking information for each payee are clearly spelled out in the Fee Agreement. Compliance All transactions are subject to our banks’ approval and verification of the origin of funds, and the parties are advised to provide our office all supporting documentation and identification in advance to ensure full compliance with the “Know Your Client” and “Know Your Transaction” policies. Black & LoBello will require documentation from all parties who may be interested in employing our Paymaster services, including a copy of the underlying transactional documents, including but not necessarily limited to the fee agreement. In accordance with Articles two (2) through (5) of the Due diligence Convention and the Federal Marketing Commission circular of December 1998, concerning the Prevention of Money Laundering, the following information may be supplied to banks and/or other Federal Institutions for purposes of verification.
David G. LeGrand