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Case Study #006: Failed Business Scam
A client approached JMS Rogers to collect debt from a “failed business” that was run by him and his ex-business partner.
Our client had entered into a business venture with a friend who dabbled in retail online sales. They had numerous internal business meetings and decided to invest the sum of SGD$50,000 each into the business for start-up costs, product acquisition, sales and marketing expenses and website development. Our client was told by the partner to make the transfer to a personal bank account held by the partner and once the company was set up, the funds will be transferred into the company bank account to a total sum of SGD$100,000 from both parties. The transfer was made and operations were to begin.
Over the next few months, nothing transpired and when our client asked about the progress, the partner kept giving reasons as to why there was a delay. It ranged from website development delays, to not being able to source for good retail products. When our client asked about the SGD$50,000 he was continuously told that it was being used properly for business expenses and purchases to get the company moving.
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