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 Li is a Chinese-American who holds US citizenship and lives in New York City, New York. He is a successful businessman who often invests in various projects. Through a friend, Li was introduced to a man who claimed to be an executive at a well-known investment firm named Zhang. Zhang recommended a high-yield investment project to Li, claiming that the project was expected to yield an annualized rate of 20 percent. The pair signed an investment agreement and invested $500,000. A few months later, however, Mr Li discovered that the project did not exist and Mr Zhang had gone missing. Mr Li realised he might have suffered an investment fraud.
Legal Response:
Identity and Background checks:
Mr Lee collated evidence such as investment agreements, bank transfers to pay for the investment, and records of emails and phone correspondence with Mr Cheung to prove the fact that he had been defrauded.
Evidence collection and fixation:
The police investigation found that Zhang's company was actually a shell company without any real business. Police also found that Zhang had multiple similar cases of investment fraud, with victims spread across multiple states.
Litigation and Arbitration:
The court accepted the case and scheduled a trial. At the trial, the lawyer presented all the evidence on Li's behalf and had a full debate. Zhang failed to provide effective rebuttal evidence. The judge made mediation proposals during the trial in the hope that the two sides could reach a settlement. After much negotiation, Zhang agreed to compensate Li $500,000 for his entire investment loss and pay $100,000 in punitive damages.
Outcome and Summary:
The court accepted the case and scheduled a trial. At the trial, the lawyer presented all the evidence on Li's behalf and had a full debate. Zhang failed to provide effective rebuttal evidence. The judge made mediation proposals during the trial in the hope that the two sides could reach a settlement. After much negotiation, Zhang agreed to compensate Li $500,000 for his entire investment loss and pay $100,000 in punitive damages.
