The series of posts on scams and the creative activity on crimes want to make you Mr. Entrepreneur wannabees and all other entrepreneur that you will be on constant onslaught of well meaning negotiations and --- scams. As Desiderata says...xxx" be cautious in your dealings for the world is full of trickery"
Here is a partial list of those that I experienced:
l. Bulk buyers from a utility company. A syndicate, after a series of meeting in girlie joints, wrangled from us a l0% commission for bulk buyers from a utility company. The ongoing rate for the house and lot package at that time was 3%. The bulk buyers turned out to be only 5.
2. Bulk buyers again. In the memorial park business, I got at least l0 bulk buyers deal, asking even for exclusive agency with fantastic 20% rate. It was good it had a termination clause; good only for 6 months if no results. They expired without any sales. Baaah.
3. Down payment from suppliers. If they ask for down payment without any delivery of anything always demand/require a performance bond or at least PDC, or a surety from a person whom you know. Some of my sad experience:
l. One of the suppliers of furniture, a friend of one of our directors, absconded never to be seen again. It was only fortunate that the director reimbursed us for his friend's scam;
2. We had trouble always with suppliers without performance bond. And oh by the way, impose liquidated damages for delays.
4. We operated a lending company and used to entertain clean loans.
l. A PDC is not a bankable instrument. Many fiscals are now very wary when issuing WOA for bouncing check;
2. Be wary of MM folks who come to you bypassing banks in MM. They must be very poor credit risk.
3. Be wary of Nigerian scam that are of local version: I will bring xxx millions of placement; but can I borrow x amount. I had at least 5 insurance agents who borrowed clean from us never to be seen again.
5. Do not rely too much on excel numbers, rely on the integrity of the individual. Are you comfortable with this guy. Some individuals are: greedy, can not understand Tagalog or English; all they understand sometimes is Money, Money, Money. Beware of these people.
6. Always summarize or make a note or minutes of what you discussed, or what was offered. People have such short memories.
7. Insist on having transactions in the office, not in restaurant or a far away place. Have payments made in your office.
I know of rackets, where goods disappeared transferred to vehicle because payments are to be made away from the store. I had friends going bankrupt to this scheme.
8. I encountered a California land deal of the century, offering cheap lands at Lancaster California. Why would I buy a land in Mojave desert? It is near testing grounds of Lockheed Aircraft and base of US army for tank maneuvers. Why would such land not be bought by Americans? Surely if such were good deals, Californians would grab them? And true enough, on the way to Nevada, I saw the area of land being offered several years back.
I will try to update this post if I recall attempts to scam me.
And by the way, they work through your friends, parents, wife, etc. and they are everywhere....Be careful. Many wear titles and even uniforms..... and you meet them at posh luxurious places....
8. Practice the same diligence when you recruit too. Applicants can scam you. They do not write the right things in their application. Single can mean single mothers...
9. Scam when you sign documents. When you sign checks, vouchers, or documents check them one by one. Ask questions. Do not sign documents in the hallway or in the car. Some of secretaries or officers will dupe you to sign things that may mean your death sentence or additional funds for unknown project. Scrutinize everything.
When we were taken over by another entity.
l0. A loan was released to a company owned by a well known educator from the Visayas. The property had a govt guaranteee (at that time it was a sovereign guarantee) So we did not investigate anymore nor did an appraisal. As it turned out the govt guaranteed loan was secured by a land title of a wateshed - it was inalienable and could not be a valid collateral. Who would shoulder the loss of a loan amounting to millions?
ll. A loan vs account receivable was processed. The borrower has a double A rating, owned a computer co and computer school. It turned out that the invoices for the receivable were non existent or had been paid. The outstanding gentleman never answered the phone calls or collection letter. I guess he is not used to paying his loan. A CI should have been done, but then the CEO shoved in a Loan Officers desk...
12. In another celebrated case that made to the annals of court of appeals.
When a loan is not a loan. The borrower, herein represented again by a famous personality, allegedly a relative of an owner of Chinese bank borrowed in the order of 7 numbers. However, upon the release of loan, he made a Deed ofAssignment of Loan Proceeds in favor of third party and the loan, on the basis of this order assignment, issued the check to the assigneee. However, came collection time, the borrower did not pay. The lender sued and the borrower brought the matter to the court. He claimed he did not receive the loan; the deed of assignment was not a proof he received the money and thus was not liable. He was upheld by the court. Yes he did not owe the bank any single cent. ... beware. No more Deed of Assignment mr. wise guysss. u ha?? you will not get away with these. You will also pay. He who does not pay....
Others:
l3. Beware of endorsing second endorsement checks because of the holder in due course thing in negotiable instrument law. If there is anything wrong with the 2nd endorsement check you endorsed, it you the last touch, the last endorser, who will shoulder the loss, not the issuer. No acceptance of 2nd endorsement check please.
l4. Never sign the PN of even friends as surety. You will pay in case they do not pay. In 99% of the case they do not pay.
l5. It is as bad as lending money to friends, relatives, boy friend or girl friend. Even lending your ATM or credit card. Even the credit card companies with their strong legal team cant collect. In l00% of the cases you will be scammed. They will not pay especially if they borrowed for hospital bills or funerals....
16. The next sure thing is usually not...
17. If it is too good to be true, then it is not...
Be on guard always, for the world is full of trickery.
As is it is the class, even graduates of leading school, even MBAs can scam you. Some will not know the difference between good and bad in making money, because that is the old way of understanding what is the definition of business is .....
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