Transnational false investment fraud: How to prevent false investment
Transnational false investment fraud: How to prevent false investment
By : Kobre & Kim LLP
Case Overview:
Mr. Lee is a Vietnamese American with U.S. citizenship who resides in New York City, New York. He is a successful businessman who often invests in various projects. Through a friend’s introduction, Mr. Li met James, who claimed to be an executive of a well-known investment company. James recommended a high-yield investment project to Mr. Li, claiming that the project's estimated annualized return could reach 20%. The two signed an investment agreement and invested $500,000. However, a few months later, Mr. Li discovered that the project did not exist at all and James had lost contact. Mr. Li realized that he might have been the victim of investment fraud.
Legal Response:
Identity and Background checks:
Mr. Li compiled the investment agreement, bank transfer records of investment payment, email and phone communication records with James and other evidence to prove that he was deceived.
Evidence collection and fixation:
Police investigation found that James' company was actually a shell company without any actual business. Police also discovered that James had multiple similar investment fraud cases, with victims spread across multiple states.
Litigation and Arbitration:
The court accepted the case and scheduled a trial. During the trial, our lawyers submitted all the evidence on behalf of Mr. Li and conducted a full debate. James failed to provide effective rebuttal evidence. The judge made a mediation suggestion during the trial, hoping that the two parties could reach a settlement. After many negotiations, James agreed to compensate Mr. Li for all investment losses of US$500,000 and pay US$100,000 in punitive damages.
Outcome and Summary:
The court accepted the case and scheduled a trial. During the trial, our lawyers submitted all the evidence on behalf of Mr. Li and conducted a full debate. James failed to provide effective rebuttal evidence. The judge made a mediation suggestion during the trial, hoping that the two parties could reach a settlement. After many negotiations, James agreed to compensate Mr. Li for all investment losses of US$500,000 and pay US$100,000 in punitive damages.
Case outcome:
According to the settlement agreement, James paid the full compensation of $600,000 within the specified time. The case was successfully concluded after Mr. Li confirmed receipt of the payment.
