LIFE in LAW - ADV. YOGESH PATIL

‘Penny Wise, Pounds Foolish’

My client is a seasoned businessman who owns a chemical manufacturing company, he received a purchase order and an agreement to deliver a large consignment of chemicals to a government department in Africa.

After preparing the shipment, the client was suddenly asked by the African company to provide certifications from a Western country, specifically Canada, rather than the standard SSG certifications initially agreed upon under the agreement. They even recommended two specific Canadian companies for this certification.

Eager to comply and facilitate the delivery, the client approached one of the suggested companies and was billed $5,000 for the certification. Feeling relieved by the manageable cost, the client paid without hesitation. However, the demands didn't stop there. The African company soon requested another, more expensive certificate, leading the client to spend an additional $20,000. With the consignment ready and no bank guarantee provided, the client complied. Later on he was asked to provide a security deposit of another $20,000 before they send him a Bank Guarantee. Client now came to me to seek legal help to sue the so called buyer to stop demanding more and accept the shipment. But what I discovered was shocking!

The red flags were immediately apparent. The sequence of expensive and unusual certification requirements was typical of a well-orchestrated fraud designed to exploit eager sellers. The scammers even had a proper websites identical to a government website, they had linkedin accounts and even valid phone numbers.

I noticed that it was a completely fake organization, fake order, fake identities – filing a case or legal action was impossible at that point. Damage was done!

The client had not consulted a lawyer initially, believing the transaction to be straightforward. This oversight led to significant financial loss and a cautionary tale about the critical importance of legal advice in international trade.

This experience underscores a vital lesson: in the realm of international business, where the stakes are high and the rules are not always clear, the guidance of a legal professional is not just an option—it's a necessity to navigate through potentially treacherous waters and to safeguard against the sophisticated scams that lie in wait for the unwary.