Transnational real estate scams: How to guard against fake overseas real estate investment opportunities?
Transnational real estate scams: How to guard against fake overseas real estate investment opportunities?
By : Kobre & Kim LLP
Case Overview:
Mr. Chen received a call from a purported foreign property developer who claimed to be marketing a real estate project in Europe, promising high rates of return and a government guarantee for the project. Without thoroughly verifying the information, Mr. Chen transferred $100,000 to the developer through a bank account provided by the developer. However, after the project went live, Mr Chen found that he did not have legal title to the property and the developer was out of contact.
Legal Response:
Identity and Background Checks:
Mr Chan handed over all transaction records to the law firm, which quickly launched an investigation. After verification, it was found that not only did the developer not have a legitimate real estate development qualification, but the property certificates related to the project were fake.
Multinational asset tracking:
The law firm helped Mr Chen trace the flow of funds through banks and international payment platforms, and found that the funds had flowed out of the country through multiple unidentified accounts. The law firm advised Chen to recover the funds through cross-border litigation and asset freezing.
Litigation and Arbitration:
Chen decided to file a transnational lawsuit, and the law firm provided legal assistance to him, which eventually succeeded in recovering some of the money and claiming compensation against the developer.
Outcome and Summary:
Mr. Chen successfully recovered part of the investment funds. During the processing of the case, the law firm assisted him in tracing the whereabouts of the funds through international cooperation. The case serves as a reminder to investors that they must conduct adequate background checks when participating in multinational real estate projects and ensure that the projects they invest in are legal and compliant.
