Business loan collection scam using the name Xue Cheng
Date First Reported: November 2013
Primary Name Associated: Xue Cheng
Description of Potential Fraud:
Two Ontario firms notified us that they received an email from the purported Xue Cheng 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 sent by the fraudster to the lawyer:
From: Mrs. Xue Cheng
Date: Fri, Nov 1, 2013 at 12:25 PM
Subject: A Complaint against my business partner.
A Complaint against my business partner.
My name is Xue Cheng, dealer in all types of led light and solar panel system. I did a supply of forty-fit container of Solar panel / Led Lights to my business partner amounting to $500,000.00(Five hundred thousand USD) which i received $350,000 upfront payment before the supply.
Upon delivering of the products, to my client, he refused to pay my balance since three months now, I am contacting you to assist me recover my balance and retain the law firm’s fee.
Please let me know what will be your success-fee percentage?
Mrs. Xue Cheng.
Hong Kong, Asia.
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.