Everyone's telling you to involve a lawyer. You've stated you don't want to involve a lawyer, so assuming that you're putting your foot down, here's what I'd d

Everyone's telling you to involve a lawyer. You've stated you don't want to involve a lawyer, so assuming that you're putting your foot down, here's what I'd do (other than involving a lawyer): Put together a letter that succinctly lists the following points: • You have not agreed to any loan • You are aware that you have been illegally underpaid, and your former employer is liable for back pay, benefits, and taxes • You have intellectual property rights to the code you produced and reserve the right to exercise those rights • You would like to consider the matter closed but if they want to persist in harassing you, you will use all legal means at your disposal to get them to stop Mail copies to all individuals involved, and do it so that everybody sees everybody involved. cc'ing a private attorney is free, though as a courtesy, you might want to consult with one prior (many will initially consult for free) and ask if they'd mind. Assuming you're US based, you can also file a complaint with your state's wage and franchise tax board or equivalent. The complaint is free, will get the desired results in the long term, but if you never had taxes paid on that income, the state may "borrow" some of it from your bank account or tax refund until things get worked out. Sucks but it sounds like a relatively small amount of money. You can also take them to small claims court to get some back pay. This needn't involve an attorney, and while I realize your goal isn't squeezing more money out of these people, it might shut them up or get them in so much more trouble that a lawyer would be more likely to take your case on contingency (you pay nothing directly). Stick with option A for now, since it's cheap and probably effective.