Proper Disposition of Money Withheld by Federal Agency from Company Which Is Now in Bankruptcy

The Director of Administrative Services of the Forest Service requested a decision concerning the proper disposition of $14,706 withheld from a company. The money was withheld pending the investigation of wage underpayments. GAO was asked to determine the priority of claims to the money from various claimants and whether the company was liable for the debts incurred by its director. All wage claims should be settled first, with any monies remaining being remitted to bankruptcy trustee. The company was not liable for the director's debts.