Business loan collection scam by Michael Chang
Date First Reported: July 2011
Primary Name Associated: Michael Chang
Description of Potential Fraud:
We have been advised of another business loan fraud attempt, this time under the name Michael Chang. It is similar to other scams by James Gilliard and Mark Rudic. For an explanation of how this type of fraud works see our Fraud Fact Sheet.
Here is the message:
I am contacting you in regards to a breach of business loan agreement with a client in your locality. I provided a loan to the company so that they can meet up with their management and operational obligation during the rough economic climate of last year. I provided the company with an emergency loan of $260,000 with a term of 24 months and fixed interest rate of 6.0%. The repayment period has since elapsed but the company has been unable to finalize the repayment of the loan and have only paid $85,000.00 till date. Let me know if this falls under the scope of your practice so that I can provide you with more information on this matter.
How to handle a real or suspected fraud
If you have been targeted by any of these frauds, please forward any of the emails and supporting documents that you have received to [email protected]
If you suspect you are acting on a matter that might be a fraud, call LAWPRO at 1-800-410-1013 (416-598-5899). We will talk you through the common fraud scenarios we are seeing and help you spot red flags that may indicate you are being duped. This will help you ask appropriate questions of your client to determine if the matter is legitimate or not. If the matter you are acting on turns out to be a fraud and there is a potential claim, we will work with you to prevent the fraud and minimize potential claims costs.
If you have been successfully duped, please immediately notify LAWPRO as there may be a claim against you.
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Fraud Fact SheetMore fraud prevention information and resources are available on the practicePRO Fraud page, including the Fraud Fact Sheet, a handy reference for lawyers and law firm staff that describes the common frauds and the red flags that can help identify them.