I am in very complicated situation with my 1099-MISC.

My brother was working at company M until October 2010. The owner of M asked me to do some graphic design work and I did. I sent invoice of $2456 on August 2010. His business wasn't doing well and he laid off my brother in October 2010. I asked for my payment and he said only way he can pay me is writing 2 checks in my brother's name ($1600/check as a consultant fee) and asked me to write back $744 to him with my personal check. I was desperate to get paid before he fold his business, so I did whatever he asked me to do. I came home that night and asked my brother to deposit the checks and write me a check of $3200.

Tax season came and my brother and I both didn't get 1099-MISC from the owner. I have been contacting him but can't find him or talked to him any more. He is out of country?? What is the best way to report this situation? Should I report $2456 (1099-MISC) on my Tax or should my brother report $3200 (1099-misc) on his tax?

Any other suggestions? Please help. Only a half of month left for the Tax Day.

Thanks in advance!