Continuing last week's article, here are few tips
on how to protect yourself against fake letter of
credit and a real life story.
Tips on how to avoid Letter of Credit
Fraud
- If an "opportunity" appears too good
to be true, it probably is
- Independently verify the terms of any investment
that you intend to make, including the parties involved
and the nature of the investment
- Thoroughly investigate the issuing bank, specially
if you never have heard of it before
- Consult your bank, ECGC or appropriate organization
- Ask for confirmation by a prime world bank
- Do not invest or attempt to "purchase"
a "Letter of Credit." Such investments
simply do not exist
- Do not invest in anything unless you understand
the deal. Con artists rely on complex transactions
and faulty logic to "explain" fraudulent
investment schemes
- Always be wary of any investment that promises
extremely high yields
- Conmen use secrecy as cover - look out for tell-tale
signs
Real Life Story...
2 held for cheating exporters
New Delhi: The police have arrested two persons for
allegedly cheating exporters by using fraudulent means
and forged documents. The accused have been identified
as Khanna (55), proprietor of XXX, and Singh (51)
of ZZZ (** you can see the real names of persons and
companies in the news clippings, please see below
for details - Editor).
The police also claimed to have recovered several
incriminating documents during a raid at the accused's
office on July 13.
According to the police, Khanna was appointed as
a consultant by ZZZ which was representing a London
based firm.
Khanna signed three MoUs with Tarsem Goel of Sawan
Overseas, Panipat, for export of carpets, bed covers
and cotton durries. Goel also reportedly paid an advance
commission of Rs 31 lakh.
Police officials allege that Khanna rejected the
goods on flimsy grounds. He allegedly fabricated e-mails
and forged a cheque for 80,000 Pounds to convince
Goel the transaction was genuine.
Source: Times of India,
July 22' 2002
(The Newsclipping with actual names of persons and
companies involved can be viewed at its source (i.e.
The Times of India at http://www.timesofindia.com)
or in News
Clippings in The Great Indian Bazaar
