Fraudulent Proof of Funds

[Steve S.]

So I went into escrow acting as the broker on a commercial deal. I spoke with the broker numerous times and when I got his contract I see that it says the dreaded "and or assigns". I confront him about "wholesaling" this deal and he says "no no no they just don't know which company they are going to take the deal down in" ... which we all know is code for "of course we're wholesaling this ya idiot."

So against my better judgement I allow this. They send the proof of funds over with everything blacked out except the name I recognize as a prominent investor in Los Angeles, CA. So i tell them that I know that investor and I will check to see if his POF is accurate and that he is in fact a member or representative of the company on the contract.

I call over and sure enough he has no membership or ownership of the company on the contract and barely knows the deal. Just that the price is now inflated by $1.5M from all the "daisy chain" BS and wholesaling garbage going on. 

I undertand wholesaling and I get that there is a place for this in the industry, but do you not think this is absurd? $1.5M added on top? How dumb are these people?

So I sent a cancelation notice to them citing Fraud. Do you think this was an appropriate action?

Curious as to what people think about this garbage.