On the subject of Fraud

[Henry M.]

An example to show fraud is alive and well today.

So I've been working on several projects and had a few fall short... I always pray for guidance through each deal and to cause the enemy to stumble whenever their intentions are with ulterior motive.

I've asked God to protect even my business associates who I work with closely as to make sure that any deal I am a part of prevails with integrity. Even if it means I have to wait longer.

So towards the end of last year (2012) we had an investor show interest in funding our project. At the time, this investor is eager to work with us and after my due diligence in making sure he has what he says he has and is capable of following through on his end... We decide to meet him for negotiations on our business venture which also includes real estate.

I create the presentations, charts, graphs, cash flow analysis, etc... For my business associates to use in their pitch. I tell them if it feels good to go for it otherwise walk away. We as a group settle on our terms of what we are willing to give and/or give up.

The meeting takes place in another city and I remain behind in San Antonio and ask all my prayer warriors to pray for guidance and protection.

The meeting goes very well and the "hefe de hefes" aka the investor extends his hand across the table to our lead associate projecting an agreement in terms (50/50 split of profits).

Later that evening one of his right hand men calls one of our associates and states the investor felt he could have negotiated a 60/40 or 70/30 split instead benefiting their side.

With this information, the lead associate and I discuss our options realizing if this investor reneges on his word, regardless of business or whether he has the capacity to deliver up to $15MM in investment in our project... It is best to walk away.

So we walk away. It didn't feel right. We left our decision with God guiding us each step of the way.

Did we make the best decision? We were never really 100% sure until July 26th, 2013.

As I was at Brake Check having the usual maintenance done, I stumbled across the day's San Antonio Express-News (paper) and on the headline reads "Valley Green-Card Fraud Alleged".

Our investor who within months of opening his Regional office earlier last year recruited up to $100MM in foreign investment funds.

It turns out the FBI had been following him in all his activities since last year and are now charging him with wire fraud, money laundering, and transportation of stolen property.

Yes we didn't close a deal and yes God saved us from a future pain of unnecessary loss.

You may Google "USA Now Regional Office LLC" then click news... It should pull up info on the subject.

Finally, even a seasoned veteran has to use his/her experience or gut feeling to help decipher who is who or what is what.

Big Henry