Supplier stole 42500 USD from me. What to do?

The following is an email chain explaining the buyer’s predicament and CSIC suggestions for next steps.

Reader:

WE ARE A TRADING AND WE ARE IMPORTING MATERIAL FROM ALL OVER THE WORLD , WE ARE ONE OF THE LEADING SUPPLIER OF ALL TYPE OF PIPES AND FITTINGS, QUESTION: ONE OF CHINESE SUPPLIER HAS CHEAT US WE PAID US$ 42,500 TO BUY PIPES FROM HIM.  AS PER THEIR QUOTE AND REQUEST WE TRANSFER MONEY BY TT IN TO THIER COMPANY ACCOUNT, IN THE MONTH OF DECEMBER 2011, BUT TILL DATE HE DID NOT SEND MATERIAL OR NOT REFUNDING OUR MONEY, WE COMPLAIN TO CHINA CONSULATE AT RIYADH SAUDI ARABIA , ABOUT THIS CHEATING , BUT THEY REPLIED THAT THEIR ARE MANY CHEATING CASES FROM CHINESE SUPPLIER ,,,NOW WE REQUEST YOU TO HELP US,,,KINDLY TELL US WHAT WE DO & WHERE WE COMPLAIN ABOUT THIS SUPPLIER.. REGARDS FAROOQI IN  SAUDI ARABIA

CSIC:

Thank you for your email below. Sorry to hear of your problem. I have a couple of questions to help me advice on your options.

Reader/CSIC

1.      Do you have a clear record of payments and PO?

YES WE HAVE COMPLETE RECORD OF PAYMENT TRANSFER BY T.T TO CHINESE COMPANY ACCOUNT

2.      Does the company on the contract match the company who received the money?

YES FIRST WE GOT QUOTATION , WITH THEIR COMPANY ACCOUNT NUMBER THEN WE

TRANSFER MONEY TO THEM

3.      Did you do any audits of the factory, or inspection of the production before making payment? If yes, please     provide those reports.

NO WE DID NOT SAW ANY AUDIT REPORT OR INSPECTION THE MATERIAL. BECAUSE WE ARE IN SAUDI ARABIA. ALSO WE DID NOT APPOINT ANY THIRD PARTY INSPECTION.

4.      Where did you meet this supplier? Online, trade show?  If on-line, which website?

UNFORTUNATELY WE GOT THIS SUPPLIER NAME FROM ” ALI BABA WEB SITE “

THIS SUPPLIER SUPPLIED OUR FIRST ORDER , THEN WE TRUST THEM AND PLACE OUR SECOND ORDER

SECOND ORDER AMOUNT WAS US$ 42,500 (APPROXIMATE) ,THEY CHEAT AND NOW NOT REPLYING OUR PHONE OR E-MAIL

5.      Does the factory ignore you or do they reply and give some reasons for why no ship?

ACTUALLY THIS IS NOT A FACTORY OR MANUFACTURER , THEY ARE SUPPLIER FROM CHINA

WHILE THEY DELAY OUR SECOND ORDER THEN WE PRESSURIZED THEM TO DELIVER OUR MATERIAL

FIRST THEY SAID THERE ARE WINTER HOLIDAYS IN CHINA FOR 10 DAYS , AFTER 10 DAYS HE SAID

WE SENDED MATERIAL FOR SHIPPING TO DAMMAM , BUT SECOND DAY THEY AGAIN E-MAIL AND

SAID THAT TRAILER DRIVER GOT SERIOUS ACCIDENT AND HE IS IN JAIL , AND POLICE ALSO TOOK

TRAILER IN THEIR CUSTODY , HE DO NOT KNOW WHEN THE MATER WILL SOLVE…AT THAT TIME

WE CAME TO KNOW THAT WE BEEN CHEATED …

IF REQUIRED FURTHER WRITTEN EVIDENCE OR RECORD CAN PROVIDE

 

First off, next time you place an order, please do two things:

  1. 1. Conduct an audit to confirm the supplier is legit before you give a PO.
  2. 2. Conduct a product inspection before you make final payment.

Here are some videos that explain those options.

Evaluating Suppliers
Project Management and Quality Control

 
If you need support to manage vendors, you should check out the China Sourcing Service Center.

Returning to the problem at hand, I think you best option is to get a collections agency involved and or work with a local lawyer to issue a demand letter. The money in question is substantial and according to your notes you have a clear record of PO/Contract/Bank payment to a Chinese business.   I would be happy to introduce the collection agents and local lawyers I have used in the past.

Question answered by Mike Bellamy, host of “Ask the Experts” at the China Sourcing Information Center.

Mike Bellamy is an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). He is also the author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com )

 

2 Comments

  1. Mike on February 8, 2017 at 12:24 pm

    if the supplier doesn’t return your funds you may want to list them at http://www.SupplierBlacklist.com and/or have a lawyer like asiabridgelaw.com contact them to recover your money.



  2. pravesh kumar dashmukhe on January 13, 2017 at 3:51 pm

    I am Indian importer I perchage paper from china company name is qingdao Shensheng Imp Exp Co Ltd add 3 room no 2244 shouguang road shibei district qingdao Shandong China tell no is 86-0532-8580105 sales manager Mr dami mobile no is 8613225420563 the company cheating me sir I send all amount above company thay send me duplicate bl copy Co certificate in thay alter other companies bl copy my company name is alter sir Co certificate also alter sir for refund my money how sir



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