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Date First Reported: April 2016

Primary Name Associated: Che Fengsheng

Description of Potential Fraud:

fraud-warning

Firms in Ontario and Nevada notified us that they received an email from the purported Che Fengsheng looking to retain them with regards to a breach of a copyright infection.

This appears to be a 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 other names associated with it , and our Fraud Fact Sheet for a list the red flags of a bogus legal matter that is really a fraud.

Here is the initial contact email sent to the lawyer:

From: Dr. Che Fengsheng [mailto:Fengshengche@454rty44inc.hk.tn]
Sent: Thursday, March 24, 2016 7:29 AM
To: Recipients Fengshengche@454rty44inc.hk.tn
Subject: Legal Representation

Dear Counsel,

My company seeks your legal representation on an Infringed Issue with our copyright agreement. We will be most pleased to read from you should you indicate your readiness and availability to take up this case with our business associated in your jurisdiction.

A referral, should you not be available will be highly appreciated as well.

We at Sihuan Pharmaceutical Holdings Group Co,.Ltd wait to read from you soon.

Regards,

Dr. Che Fengsheng
Chairman/Sihuan Pharmaceutical Holdings Group Co,.Ltd 21st floor of Building 2, Balizhuangxili Zhubang 2000 Chaoyang District, Beijing.

Replying to the email brought this response:

Thank you very well for your response which is highly appreciated.
Furthermore, your services towards the enforcement of our intellectual
property rights is needed. We have a contract manufacturing agreement with
Bradmer Pharmaceuticals Inc and located at 365 Bay St Suite 800 Toronto,
ON M5H 2V1, Canada for the manufacture, supply and distribution of our
medical and pharmaceutical products to consumers in Canada. These medical
and pharmaceutical products or devices are embedded or preloaded with our
proprietary software coded in Chinese language but equipped with a Chinese
to English language translator from our factory or assembly plants here in
Beijing before being shipped to Canada.

However, as a result of increased market demand for our medical and
pharmaceutical devices in Canada and to make our products compete more
favorably with other products, there was the need to have the embedded
software written in English language. It was considered that these will
remove several inefficiencies as result of translation from Chinese to
English language. As a result of the foregoing, we entered into a
copyright license agreement with Bradmer Pharmaceuticals for the
translation of our software programs from Chinese to English language for
our medical and pharmaceutical devices. So we entered into a copyright
license agreement with our client in March 2015 for the translation and
development of our software programs in English language.

However, in July 2015 during a schedule facility and inspection tour by
our audit consultant from Beijing to our client manufacturing facility it
was uncovered that Bradmer Pharmaceuticals was equally manufacturing the
Spanish language versions of our product without license. In addition, our
client was equally distributing the unauthorized Spanish language versions
of our products within and outside Canada and this is a complete violation
of our agreed terms.

Following the initial discovery by our audit consultant, a detail
investigation was carried out and it was confirmed by our client that
300,000 copies of the Spanish language version of the software programs
have been produced and 250,000 shipped and sold already in Canada and
Mexico. After this agreement was breached, we had a lengthy negotiation,
and consequently it was mutually resolved and agreed that sixty percent
(60%) earned profits on the unauthorized production should be payable to
us and payment deadline of end of September, 2015 was agreed. However, the
deadline date was extended to 13th of January, 2016 as requested for by
Bradmer Pharmaceuticals.

Quite unfortunately, the extended deadline was not honored.

Despite the foregoing, I will like to draw your attention to the
relationship with Bradmer Pharmaceuticals which has been cordial and we
have had a successful business relationship over the past few years, and
it is our position to maintain the relationship after settling the issues
on hand. Right now, I will like to take appropriate steps and measures to
enforce our copyright license agreement and/ or claim infringements and
damages as appropriate.

Our expectation of your services for now will be within the scenario of a
DEMAND LETTER to Bradmer Pharmaceuticals. This approach will trigger the
much needed response from our client towards amicable settlement otherwise
we will not hesitate to go into court litigation. We are prepared to pay
your retainer fees. Attached is the copyright agreement and as we progress
we shall send other documents.

We look forward to your prompt response and Kindly send now your retainer
agreement which will be signed and returned to you.

I sincerely wait to read from you.

Kind regards,

Dr. Che Fengsheng
Sihuan Pharmaceutical Holdings Group Co,.Ltd
Chaoyang District, Beijing.
Email: che.fengsheng@sihuampharm.com
www.sihuampharm.com

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 fraudinfo@lawpro.ca

If you are an Ontario lawyer who suspects 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.

For more immediate updates on fraud and claims prevention, subscribe to the email or RSS feed updates from LAWPRO’s AvoidAClaim blog.

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.