You said the loan would be approved in 10 days

Description of an Advance Fee Scheme 

Advance fee schemes are common.  Particular can vary but here is a common scheme.  A company advertises ready capital for construction, investments, or other purpose.  An individual presents a plan for a new building, the company asks for information and then tells him he's approved for a 2 million capital loan, and that a 2 point processing is needed to provide the capital. After forwarding the money, the victim waits and now finds excuses, they need 2 weeks to process, there is an issue with the capital provider or not infrequently the victim is blamed, we found deception statements on your application.  
Claims can be hard and here are some common mistakes. 

1. Assuming Law Enforcement will Address the Fraud 
   
   One woman was a victim of a similar fraud and wrote, 
   She finally reached one executive on the phone, she was told: "Ah Ingrid, you sound like an hysterical woman. We don't know what we're missing here because we're trying everything we can to fund your deal... She went online and found hundreds of other victims who were scammed into giving up $10,000 to $25,000 in advanced fees and that no one got their investments, either.  She even discovered the companies the funder bragged about helping had never heard of the financial group.
   
   Yes despite the clear and overwhelming evidence, law enforcement initially did nothing.   Her "calls and complaints fell on deaf ears.  She reported her complaint to the Federal Trade Commission, the FBI, Treasury investigators and state attorneys general and no one would take the case. She was told there was too little money involved." 
   
   Victims need to be persistent but understand frequently law enforcement will not act unless many similar victims are located. 
   
   2. Civil Lawsuits and Locating Counsel 
   
   Because there is no insurance, companies may not have assets easily located, lawyers may be difficult to find.  Certainly lawyers willing to handle the claim on an hourly basis may be located, but client should investigate whether straight contingency, split contingency, fee caps, or other devices to limit legal fees are available.  To limit time, clients may be asked in advance fee schemes to locate material about the fraud. 
   
   3.  Confusion Benefits the Defendant
   
   Even though the fraud may be complex the client initially needs to explain the deception in clear and simple language and the lawyer's complaint needs to so too.  If there are multiple parties involved in the scheme, each's role needs to be identified, saying they all knew and participate in the fraud without providing detail may annoy rather than impress a judge. 
   
   4.  Consider Reasonable Early Settlement 

 While frauds may continue many of these culprits ultimately go broke, and clients need to consider reasonable early settlements. 

5. Don't Get Overly Impressed by RICO

The client says, we'll file a RICO complaint and really scare them.  The defense lawyer says, we'll be in court for the next 2 years dealing with different technicalities since RICO is a complex statute.  Frequently a basic fraud or consumer fraud claim is easier and moves the case along. 

6. Stay out of federal court  

Federal courts have strict pleading rule for presenting the claim and a substantial part of the evidence is needed at the initial stage.  Many state courts are more lenient and victim-friendly.  

7. Don't Get Caught Up with Discovery 

Yes you want information from the defendant but the goal should be to push towards trial. 

8. Don't Let Defendants Flip Flop with their Counsel 

Not infrequently, defendants want tough lawyers to challenge claims but then don't pay them.  The lawyers may file applications to withdraw and then get paid.  Since these are public, once the lawyer seeks to withdraw, ask the court to allow him to withdraw or prohibit further applications for withdrawal so the case is not delayed. 

9. Evidence is Needed  

Our courts are evidence, not justice based.  Expect your lawyer to grill you on the evidence and the judge to grill him.  There's no shortage of frauds, Madoff, Wolf of Wall Street, Enron, that were initially investigated but the defendants persuaded a court or investigatory body that no serious wrongdoing was occurring or the victims failed to produce sufficient evidence to prompt action.  Don't assume that just because there is a fraud, you identified a fraud, family members, know there has been a fraud, that the Court will find one.   


Call for a Free Consultation on Your Advance Fee Fraud