I was involved in a deal worth 12,000USD last year. My purchaser knew who the supplier was but went through me because I was able to get a better price.

My supplier had provided in the past, however this time he was scammed. The PO was in my name, but the payment details were directly to my supplier.

Now that he cannot seem to recover the funds from my supplier or the source, he is telling me that he has no choice but to try and get the 12,000USD from me.

My question is, if I was acting as the broker and he the payment was not directed to my accounts, am I liable for the amount? I have since dissolved my business and taken a trading job for another company so there is actually no company registered to go after. I was an LLC which protects me from personal liability and my business did not have the funds to recover if he was able to get it out of me.

I would think by the time he has an attorney travels to the USA, the cost would probably exceed the amount he is trying to recover.

Any advice or reference points would be MUCH appreciated!

Replying to [Dustin Adam Jones]:

If your customer wants to take an legal action against you, it is not that easy for you to be let of the hook even if you have dissolved your company, as if your are into this mess together and you have to bare some resposilility, there is not much you can do at this moment but to get your finger crossed for the buyer do come after you, just get on with your life and only worry when they really pursuing it.

Replying to [Dustin Adam Jones]:
You should telling your situation to the supplier,and if he ask for attorney reach you to recover the fund,actully it is a big cost(even exceed the amount usd12,000) and not worth to do, because you've worked for another trading company and no registered info out there. so it is in vain for the supplier do like that.

Replying to [Dustin Adam Jones]: sorry, i can not give you any useful advice, but wish you everything goes well!!!

Replying to [Dustin Adam Jones]:

Hello there,

Sounds interesting, I have heard of such cases before, and some of my collegues had experienced it as well.

The problem starts with the Customer trusting you and not the source, using you as the controller in between, incase anything goes wrong, and therefore relying on you. So incase something does go wrong, then apparently you are in deep .

But there are ways to clear your name, that is if you kept record of every little piece of transaction.

You already mentioned that the money was never transfered into your accounts, directly to the supplier. If you have bankstatements stating that, or your CA can confirm that, then you are already 70% out of the mess, since you can say, that you never received any funds to do the deal and your company does not have enough funds to have gone through that deal.

The other part that you need to clear is, were the goods send to you by the supplier or directly to the customer. If they were send to the customer directly, and didn´t go through you physically, then you hold no responsiblity, because then you can say that when you checked the goods everything was in order, and you have no idea what might have happend behind your back. All you need is physical evidence of your controll, like pictures, letters, or any written info to you customer.

Also one more argument you can use is that despite you being inbetween the customer never told me what to do and instead went straight ahead with the supplier, they used my name to make me responsible for any problems, so they would be clear. I was unaware and naive. Sounds cheap but the last escape.

But for USD 12000,- its unlikely he is ever going to come after you. The tickets cost USD 2000,-, plus the stay time USD 2000,-, plus advocate, USD 2000,-, and additional expenses USD 2000,- or more.

So no worries.


Good Luck

Replying to [Dustin Adam Jones]:Now the market is open , and to be sincere and trust for both of suppliers and importers.

Then can keep the business better.

Replying to [Dustin Adam Jones]:Dustin, What I personally feel that you should help your buyer by getting the goods from the supplier, Please note that you were involved in dealings however, I feel that this is your duty to get the things delivered from Supplier, Please get in touch with the supplier what he is telling, what is the problem in delivering the goods, Try to contact their higher ups or If In case he is unable to supply get the refund of the money. I think this is your moral duty to help your buyer and in order to get further business. May be you are right that the court fee and other expenses may be more but as a Trading agent you should resolve the issue between the parties.

Replying to [Dustin Adam Jones]:
This case is very interesting.My advice to this situation is that you were involved in negotiating price for your buyer.. and supplier got the money instead of you.. well you have prove to buyer you did not get the fund in your account instead it went to supplier.
2. To help buyer.. you have to negotiate with supplier like you get the good price for buyer to get his supply he (buyer paid for).
3. Any legal action against you will be not much benefit since you assume you did not get fund.
4. Get the supplier bottom to get goods and credit/negotiation on behalf of buyer. If still buyer insist you may proceed legal action to prove that you don't have money.

Many scammer put you in the middle..to get credit of their worthiness! good luck i hope that help1

Replying to [Anshu]:I agree with you

Replying to [Dustin Adam Jones]:
1> If you received any type of payment for your services you ARE liable.
2> Sending a lawyer from overseas will not happen. He will have his lawyers instruct a lawyer in the US.
3> As an LLC that has been dissolved I am not exactly sure how you would be affected. This would need you to consult an attorney here in the US.

I may be reading it all wrong but it seems the supplier was someone you had already dealt with.... Where did the scam happen and with what products? It seems to be a bit unusual.

Replying to [Firo]: learned more from you, thanks