Legal Question in Business Law in California

syndicate false letter of credit

My brother has garment manufacturing facility in Indonesia.One day he receive order from a Korean businessman specifying that raw material (fabrics) to be purchased from Korea. And he has someone in Las Angeles to open the L\C for the merchandise once it is manufactured.After my brother bought the fabrics from Korea with a inflated price and start manufacturing, the buyer did not come and inspect the goods, instead, he cancelled the order. Later my brother find out that he did this tricks to at lease 7 other manufacturers in Indonesia. What can we do to prosecute this businessman. The company who open L\C is in Los Angeles, I believe is one of his syndicate member.


Asked on 8/27/01, 12:13 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: syndicate false letter of credit

it sounds like you will have to file a lawsuit. you need a more detailed consultation with a lawyer to determine where to file it.

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Answered on 9/05/01, 8:53 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: syndicate false letter of credit

This case sounds like a possible candidate for bringing an action under the 'Civil RICO' laws and precedents. RICO=Racketeer-Influenced and Corrupt Organizations. Investigation and research before filing would probably be complex and expensive, but RICO judgments can involve high damage awards including award of attorney fees. How large are the contracts in question -- in the $10K range, or more like $100K? Or more? How large were the actual losses sustained by the manufacturers? This sounds like an interesting case; I'd like to hear more. I have some prior experience in evaluating company patterns of bad behavior for possible RICO actions.

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Answered on 9/05/01, 9:10 pm


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