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Thank you for your follow-up, Aaron.You personally are not liable for the torts and crimes of others. The company, however, can claim that as they never received the funds themselves (since he was a contractor and not an employee), you still owe them money as they never received it. Your best defense in this instance is to point out that as he was acting as their 'agent', his receipt of the funds is treated in the same way as if they received the funds themselves. They would need to pursue the contractor for the funds owed and not you, although in theory they could at least try to pin this debt on you. I say 'in theory' because it is very hard and unlikely for them to make this as a valid argument if there is evidence that the other person acted on their own AND you had no idea he was intending to steal the funds.Good luck.