Business debt collection scam using the name Gary Eider
Date First Reported: July 2013
Primary Name Associated: Gary Eider
Description of Potential Fraud:
[Updated Aug 20013]
Eight lawyers in the U.S. and one in Serbia have notified us that they received an email from the purported Gary Eider looking to retain them with regards to a breach of a business loan agreement.
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 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 send by the fraudster to the lawyer and the subsequent responses:
From: Gary Eider [mailto:[email protected]]
Sent: 06 July 2013 20:38
Subject: Legal services
My name is Gary Eider and I am in need of your legal expertise. I loaned $295,000 to John Anderson, the money which was to be paid back in 2years but he has not done so yet. Please I will need your help to file a law suit against him to recover the money I’m owed and I truly hope you can assist me with this.
Replying to the email brought this response:
Sorry for the late response but I only just saw your mail in my junk folder. I have been under medical supervision because of a health condition I have been struggling with and due for a surgery next week. I might be unavailable for some days as a result and just thought you should know. I would have preferred to meet with you but my present location does not permit that to happen immediately, but should my presence be needed in court or otherwise then I’ll have to make that trip. Here is my number +85281915874.
In discussing the loan, please find attached a copy of the Loan agreement which I feel should explain my situation a lot better. John resides in North Carolina and I lived in Cleveland, Ohio, when the transaction took place but I relocated to Hong Kong in late 2011 because of a job I was offered which makes it even harder for me to pursue this case by myself now. John was the husband of my late sister and came to me requesting a loan of $295,000 because he was in some financial difficulty and needed a bail out, and since I considered him family because he always there for my sister before she died, I decided to loan him the money provided he repaid it back on or before the end of January 2013 which he agreed to but hasn’t done so.
I started requesting he pays what he owes me in January this year and he paid back $89,000 and has paid nothing more since. I have told him I need my money urgently but he keeps telling me that he will get the money to me soon.
I have my own business which has not been doing well lately and I sure can do with those funds right now. My health is failing and I have problems of my own and need all the money I can get. I’m tired of requesting for repayment and need you to file a legal claim against him in court so a collection process can be initiated against him. I need John to understand how serious I am about getting my money back.
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 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.