Commercial debt collection scam using the names Liu Qiang and Xinying Group Holdings
Date First Reported: January 2015
Primary Name Associated: Liu Qiang
Description of Potential Fraud:
An Ontario firm notified us that they received an email from the purported Liu Qiang of Xinying Group Holdings looking to retain them with regards to a commercial debt collection.
This is a classic bad cheque scam that presents as legal matter requiring the assistance of a lawyer. In this scam lawyers will be duped into wiring real funds from their trust accounts after depositing a fake cheque received as payment from the debtor (who is part of the fraud). See our Confirmed Fraud Page for more of an explanation of how these frauds work and to see other names associated with it. Our Fraud Fact Sheet lists the red flags of a bogus legal matter that is really a fraud.
Here is the initial email from the fraudster to the lawyer:
From: Luke Reaume [mailto:email@example.com]
Sent: Monday, January 05, 2015 11:23 AM
Happy New Year!!
Does your law firm handles civil contracts OR Litigation?
Replying to the email brought this response:
Thank you for responding to our email with regard to the above subject matter,
In October, 2013, we signed an agreement for an order for goods from Home Depot after due consultations and the terms of the sales contract requires we pay 50% of the total cost of the ordered goods before delivery and the balance after we have received the same goods. However, after we paid the initial deposit, we did not receive any goods as required. The goods ought to be delivered in December, 2013. More time was given to them to deliver the goods which they were still unable to meet with. Hence, we requested for a refund.
Several efforts to have them refund the initial deposit which yielded a refund of substantial amount but the remaining balance still at large. We have therefore decided to resort to legal means since there is an existing agreement prior to the transaction. Find below details of the supplier for your conflict check.
The Home Depot.
Address:530 Great Northern Road, Sault Ste. Marie, ON P6B 4Z9,
Haven suffered so much loss as a result of this failed transaction and we are ready to proceed with litigation if the need should arise. Let us know the best way to have this issue tackled and we will comply as long as we get results. We will like you to respond to our concerns in detail in your reply.
Are they any foibles you see in this case?
If litigation is involved, the distance gives us some concern with regards to court appearances. How can this be handled?
How much is your legal fee? Do you charge on hourly basis or contingency? How long have you practiced?
What should we expect from you? Any guarantees? All relevant documents are attached.
A quick response will be appreciated.
Xinying Group Holdings
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 firstname.lastname@example.org.
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.
What can you do to help put a stop to the fraud attempt? You can simply stop replying to the fraudster’s emails or inform them that you suspect fraud and will not act on the matter (or will take no further actions on the matter). You can report the fraudsters email addresses to the email hosting company. If you have a fraudulent cheque you can destroy it or send it to the fraud department of the financial institution, which may wish to see it. In Canada, you can report the fraud to the Canadian Anti-Fraud Centre.
We are often asked if it is worthwhile to report the fraud attempt to the police in the hopes of helping catch the fraudsters. You can certainly report the fraud to your local or federal law enforcement agencies, but unfortunately it is often difficult, expensive and time consuming for them to attempt to shut down these online fraud perpetrators (though there are some successes).
If you have been successfully duped, please immediately notify LAWPRO as there may be a claim against you. Instructions on how to report a claim are here.
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Fraud Fact Sheet More 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.