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| PROTECT YOURSELF FROM SCAMS! Research all business opportunities thoroughly, and never blow off other people's bad experiences. Ask around (and listen!). The Scams101 Message Board is a good place to start. What's that? You've found a Biz Op and you're wondering if it's endorsed by FIB?... Not unless it's listed in MaaMaw's Magnificent Toolbox. |
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FIB - Scams 101
Chinese Business Scam
Posted By: Jim Cote
Date: Monday, May 11, 2009, at 11:29 p.m.(pst)
so here's the deal - we are a small metal stamping located in New Jersey - we receive an RFQ from a Chinese Trading Company by the name of Beijing Hensheng tongda Trading Co., Ltd. - the total value of this thing is $48,000 in tooling to produce the part they want and almost $1,000,000 a year in revenue -so we offer a quote - and are told our price is the best and they would like to move forward - the reason they want a US source is their customer is located in Toronto Canada and the freight from China makes it more attractive to produce in the US - therefore, they are seeking a long term relationship with a US stamper -
They draft a proposed contract - we re-butt and they accept the terms - but, we are told that to move forward our CEO (me) has to meet their CEO in Beijing to formalize the contract -
I fly to Beijing - for $1,000,000 a year - its worth the airfare - and they pick me up at the hotel and go to their office - now it becomes curious because they tell me they have 40 people in Beijing but, I am shuttled to a central conference room that many businesses share - and am never shown their office - they also indicate they manufacture in Schenzen with over 400 people
We do company presentations to each other - and am told that their CEO believes he has made a good choice in choosing my company -
We now go through the contract line by line -
Now part of the deal is they pay us for tooling and material up front - this is almost $350,000 - (a sweetheart deal - almost too good to be true!) - and we get to the final paragraph - now here is where the hook comes in
This paragraph states that the contract has to filed with the Chinese government - and that the two companies will share the cost of "notarization" equally - ok - so how much is it - well it works out to .8% - or $8000 - of which I am responsible for $4,000 -
So I say - no problem - you guys pay it - and deduct the $4K off the $48k tooling you have to pay - OH NO!!!!! we can't do that!!!
In order to process you (me) have to wire transfer $4,000 ASAP so we don't delay the order - customer needs parts!!!Well - while reviewing I take a REAL close look at the drawing and see the name of a company in the title block - and I use the browser on my blackberry to check it out!!! Hmmmmmmmmmmmmmm!!!!! turns out the company in in Massachussetts!!!! so I ask -
who is this company named in the title block????? - they respond "Oh, we do not make our own drawings so we subcontract to them to make drawings" - really?????? gee???? well that company is ALSO a metal stamper!!!! so I tell them - I cannot wire any money right now - after all its a 12 hour difference in time -
I will have it done tonight!! - as soon as I can i call my office and have them call the company in Massachussetts - here is where it gets verified!!!!The guys in Mass had been approached about producing a part for them - but, were just given sketches - they made up the drawing for these guys, quoted it, sent two people to Beijing and were told they won the business, BUT!!!! had to pay $6000 quality fee - which THEY PAID!!!!! - then were told geezz - no business now!!!
Since then they (the company in Mass) has received seven(7) phone calls from other metal stampers which have been approached to produce this part (from their drawing) all telling the same story as I am -
I consider myself lucky - it only cost me airfare and hotels for 4 days - at least they didn't get my money
So there you have it - a big order in a down economy!!! and hey, $4000 to get it doesn't sound that bad! well, the moral of the story?????
************IF IT SOUNDS TOO GOOD TO BE TRUE - IT PROBABLY IS***************
Old moral but it still works!!!!!!!
BEWARE!!!!!!! Remember that name - Beijing Hensheng Tongda Trading Co -
On another scam site I saw their name associated with ripping off people wanting to attend a deep sea diving school in Australia - these guys are proffessional SCAM artists!!!
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| PLEASE READ THIS LEGAL NOTICE CAREFULLY BEFORE YOU FILE A LAWSUIT OR EVEN WASTE TIME THINKING ABOUT IT. It has been done before, but never successfully. In fact, the last dodobird who tried it ended up being ordered to pay more than $77,000 in attorney fees ($65,000+ to my attorneys and $12,000+ to my co-defendant's legal advisor).
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