This Fraud Warning is an attempt to make both parties aware about the seriousness of misrepresentation of facts as presented in any documents relevant to the transaction you are working on together. “Fraud is generally defined in the law as an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injury or damage. Fraud may also be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading.” Fraud Law and Legal Definition.
To the Seller – It is fraud to present an offer to sell a product that you do not have or provide a service you are not qualified to provide, to incorrectly specify the properties of the product, or to omit information that would influence the decision of the buyer whether or not to buy the product.
To the Buyer – It is fraud to present yourself as a legitimate buyer when you do not have the resources or intent to complete.
To both the Buyer and the Seller – It is fraud to present information or promise to any broker in a transaction with the intent of circumventing the broker or brokers at any time during or after the contract has successfully been concluded. It is equally an act of fraud to cancel or terminate negotiations with the intent of restarting them without the brokers’ participation.
INTERNATIONAL CHAMBER OF COMMERCE (ICC) WARNING
If an LOI, ICPO, RWA or BCL is issued and the document is not real and true representation of the facts and / or intermediaries posing as buyers ,the seller may inform the relevant parties to ICC and Interpol or other local authorities which may result in investigation, blacklisting and legal liabilities that are beyond our control . Also, after an FCO is sent to the buyer, there need to be a formal response to the seller to the buyer at the right oh time, in accordance with the agreement between the parties. If no response comes from the buyer within a reasonable time, the seller can report the buyer to authorities for which we can not be held responsible. Those who create, transmit false LOI, ICPO and BCL or RWA, there could be consequences more than just loss of business relation for such action. This is a violation of ICC codes and a FEDERAL CRIME.
This came into force on November 15, 2008, after coordination between the US Federal Reserve, European Central Bank, Interpol, the Federal Bureau of Investigation and the Central Intelligence Agency and subsequent legislative update of 18 USC, CFR and applicable law.
The reason for this notice and measure is to protect the commodity industry, which is a fundamental part of the global economy.
