Investment Fraud

Client: An Asian Investor 

A recent arrival from Asia had been introduced to an Asian banker by a new acquaintance. She was instructed to advance funds to the banker in order for him to complete a real estate deal. He stated that he would repay her the following week, which he did.  At that time, he told her that as a gesture of his appreciation for her help, he wanted her to partner with him in a very profitable real estate investment. She invested $250,000, but this investment failed to generate positive cash flow.

Acting together, the three other investors advised her that they needed to sell the building before encountering additional financial loss. She agreed, and the building was sold to the bank at a ridiculously low price…the very bank where the banker was employed.

Gladding & Michel’s investigation revealed that the three other investors had ten dummy corporations, most of which existed only on paper. These three partners were not to be found.  Using confidential sources, we located two of the partners; they were forced to appear in court where our client won a $400,000 judgment. Despite the fact that these partners had committed this fraud on numerous occasions, this was the first time anyone had succeeded in physically locating them and bringing them to justice.