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Date First Reported: February 2016

Primary Name Associated: Kenji Kimura

Description of Potential Fraud:

fraud-warning

Firms in New York and Minnesota have notified us that they received an email from the purported Kenji Kimura of Loon Steel Ltd looking to retain them with regards to a commercial debt collection.

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 purchaser (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 email received by the lawyers

From: Human Resources [mailto:[email protected]]
Sent: Tuesday, February 16, 2016 6:51 AM
Subject: Breach of Contract

I wish to file a Breach of Contract action against my client for failure to fulfill his contractual obligations.
Please advise if you handle such case.
Respectfully,

Kenji Kimura
H.R. Manager
Loon Steel Limited
Tel: +81 345 10 1254
www.hkloonsteel.com/en.cfm

Replying to the email brought this response:

We appreciate you giving us a chance to discuss our case. We placed an order for some goods from fastenal Inc back in August, 2015 and the terms of the sales contract requires we to 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 made the 50% initial deposit, we did not receive any goods as required. The goods ought to be delivered in September, 2015. More time was given to them to deliver the goods which they were still unable to meet with. Hence, we requested for a refund.

We have made several efforts to have them refund the initial deposit, but to no avail. 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.

FASTENAL COMPANY
USA

We have suffered so must 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. Furthermore , we have concerns and would like you to respond 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? What should we expect from you? Any guarantees? Provide us with an agreement letter/Fees for our company’s review. The contract document would be provided asap. A quick response will be appreciated.

Kenji Kimura
Tel: +81 345 10 1254

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 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.