Recovering a $600k Investment Scam

Client Name: (Confidential)

Debt Amount: $600,000

Relationship: Client’s best friend and long-time business associate

Background

A client approached Assured Debt Recovery after falling victim to an investment scam orchestrated by their best friend. The perpetrator had promised high returns through a
supposed real estate project but used the funds for personal gain. Despite the emotional connection, the client was determined to recover the funds.

Challenges

1. The debtor leveraged the personal relationship to deny wrongdoing.

2. Initial communication attempts were ignored.

3. The debtor’s financial assets were dispersed across multiple locations, complicating enforcement.

Process

1. Initial Investigation:
The investigation team conducted a thorough assessment, including:

• Gathering Evidence
• Emails, text messages, and signed agreements
• Bank transaction records showing the transfer of funds
• Witness statements verifying the scam’s nature
• Asset Tracing
• Tracked hidden assets through property records and corporate affiliations

2. Negotiation Attempts:

The debt recovery team initiated communication with the debtor:

• Sent demand letters outlining the legal ramifications of non-payment.
• Conducted multiple negotiations to encourage voluntary repayment. Despite these efforts, the debtor refused to comply, citing financial hardship.

3. Enforcement Visits:

Assured Debt Recovery escalated the case by dispatching the debt collection team to the debtor’s known addresses:

• Visit 1: A professional yet firm discussion emphasizing the client’s intent to pursue legal action if necessary.
• Visit 2: Revisited after evidence surfaced of hidden assets, forcing the debtor to acknowledge their capability to repay.

4. Legal Preparations:

The team prepared for potential litigation, gathering evidence and verifying the debtor’s financial disclosures. The looming threat of legal consequences pressured the debtor into cooperation.
After weeks of persistent efforts:

• The debtor agreed to a repayment plan under a legally binding agreement.
• An initial lump-sum payment of $150,000 was made within two weeks.
• The remaining balance of $450,000 was scheduled over 12 months
  with collateral ties.