When it comes to doing business with other companies, the last thing that you might be expecting is to be taken advantage of. This, of course, does happen from time to time however most companies take legal remedy in order to put the situation right. But, what do you do when the lawyer gets in on the action as well?
MX Properties entered into several partnerships at the end of 2016 with companies and individuals introduced to them by an outside consultant named John Diak. The partnerships were developed in order to create a mutually beneficial partnership between the partners that allowed them to purchase financial instruments commonly used in bank to bank lending transactions. However, it was discovered just a few months in that the business partners had no interest in creating mutually beneficial partnerships. They were more interested in lining their own pockets with the proceeds of MX Properties.
The way they did this was to convince MX Properties to make various deposits to their companies so that bank accounts could be opened on the behalf of MX Properties as a way of securing the lines of credit that were supposed to be used to purchase the financial instruments, allowing MX Properties to receive their original deposits back, keeping them from losing any of their original investments. However, rather than opening the new bank accounts, these business partners deposited the money sent by MX Properties into their own bank accounts. What’s worse is that since the money was sent via bank wire transfer, the funds were unrecoverable by the originating bank.
MX Properties began exploring their legal options for recovering their funds when a demand letter addressed to their consultant Mr. Diak arrived, requesting that MX Properties send $11,000 in fees in exchange for the release of the project funding that had been promised. At first, MX Properties was hesitant to send any more money for fear that it would be lost as well. However, seeing that the letter had been sent by a Lisbon Portugal attorney named Carmen De Souza and they received the written confirmation from her firm that project funding would be released immediately, they felt as if they risk was worth the potential reward. Unfortunately, it was not.
Carmen de Souza had also committed fraud against MX Properties and they are now working to find a remedy that will get them all of their money back. Part of that effort includes launching a public awareness campaign, which has now drawn the attention of yet another individual who seems bent on making sure that MX Properties not only doesn’t get their money back but that they lose their reputation in the marketplace as well.
Of course, all of this could have been avoided by doing a thorough vetting of all of the individuals involved in the fraud from the original consultant to the partners and even to the lawyer, Carmen de Souza. Future business transactions will include an in depth review of all business opportunities that arise.