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April 30, 2008

An Old Scam, But with a Twist -- China

Keep your eyes peeled for what looks to be an old scam decked out in sexier apparel. What appears to be a persuasive e-mail, purportedly from the Shanghai Representative of a Hong Kong machine-tool company, is making the rounds of some American attorneys. I and several other attorneys in the U.S. received them yesterday. (I have removed names and phone numbers.)

Dear Counsel,

I have previously sent you an email that was not acknowledged hence the need for me to forward this correspondence to you again; your urgent confirmation will be highly appreciated. If you are not in position to represent us at the moment kindly advise us immediately.

I am (Name), President/CEO of (Name) Co. Ltd., Hong Kong. We got your contacts from the United States Chamber of Commerce Directory through the Hong Kong Trade Development Council. (We) specializes in manufacturing fasteners, industrial parts, machine components, hardware kits and other general assemblies for virtual any finished goods delivered in retail-ready packaging to our customers.

The management of (Name) Co. Ltd., HK, requires your Debt Collection and Legal Services representation for our Customers in the United States. We are of the opinion that the ability to consolidate payments from customers in United States will reduce the high rate of outstanding payments and the penultimate reduction in the net book value of bad and doubtful debts as indicated in our current trading position. After a careful research, we have been able to establish that delinquents or past due accounts are settled when reputable and aggressive firm or professional(s) represents an organization in collection of debts or possible litigation that may arise thereof. In addition, it is our ultimate goal to employ your services for the eventual formation of our subsidiary office in your geographical business riding because over a long period of time, we have observed that the economy, environment and policies issues in your state (among the rest) are highly stable and conducive to business.

We understand that a proper Client Retainer Relationship will provide the necessary actualization and authorization and we are most inclined to commence talks as soon as possible. We are seeking for collection approach that is one of negotiation not confrontation as we wish to continue the cordial business relationship with our customers and we will expect these customers to be treated with due care; and properly attended to without losing them to our competitors. But, we shall NOT hesitate to be firm under certain constraints.

We are open to negotiation as per your working terms as regards benefits and commission.

On behalf of (Name) Co. Ltd., please accept my sincerest appreciation for your willingness to render your services to us as I look forward to your prompt response. Do not hesitate to contact us if you have any questions or concerns as we are very open to suggestions and advice towards this relation. Indicate your response to us by email (URL) or by fax (telephone number with an 852 prefix) stating Ref. No.: BMTC/ATT/US/08/03A.

Note the suspect indicia:

• Right off the bat, the writer offers a retainer!
• China is hot -- and now they're coming to me! (As I've written many times, try to avoid being sucked in by the purported sexiness of anything Chinese without applying first a skeptical attitude which constantly questions until satisfied.)
• The e-mail is fairly well-written, but with the errors one might expect from a Hong Kong Chinese with a good deal of education. That said, it reads as boilerplate written for a mass audience.
• The domain name of the e-mail leads to a fully developed and persuasive website of a company with ostensibly Hong Kong and Shanghai contact information. But the website whois information displays a Toronto administrator with a misleading e-mail address.
• The e-mail does not refer to me by name at all.
• The claim is made that the writer came across my name in the directory – a Chamber of Commerce directory -- in which I am not listed
• The personal e-mail of the “President” of this company is info@[domainname].com.
• The writer claimed that he had contacted me once before by e-mail, which he had not.

A barrister in Canada comments:

This sounds like a variation on a familiar scam that targets attorneys. From what I have heard, it goes something like this:
1. Attorney goes to do collection. The alleged debtor caves in and agrees to pay a settlement amount to attorney in trust.
2. Attorney receives a certified cheque to deposit into trust in satisfaction of debt.
3. Attorney then is to disburse settlement amount to client from trust funds. Attorney wires settlement amount to client.
4. Turns out the certified cheque is a forgery. Client disappears with money. Debtor also disappears. Attorney has to repay monies back into trust out of attorney’s own pocket.

This article, “Fraud Scam Alert," published in LawPro magazine, provides some background. [Editor's note: Kudos to the barrister...] The purported China affiliation may make this scam more appealing. In fact, since I do both “litigation and collection” work for Chinese businesses in the United States, and did not know early yesterday morning that other attorneys had received the same e-mail, I initially thought the request might be legitimate. But be advised -- do your due diligence first. If it smells bad, it stinks.

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