Sunseeker Yacht Club magazine - Yacht Brokerage Yacht Charter - October 2011 issue
YACHT SALES AND FRAUD: WHAT TO LOOK OUT FOR P EGGY J. G ARCIA.
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Transcript of YACHT SALES AND FRAUD: WHAT TO LOOK OUT FOR P EGGY J. G ARCIA.
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YACHT SALES AND FRAUD: WHAT TO LOOK OUT FOR
PEGGY J. GARCIA
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Cashier’s check scams
Usually non-resident purchasers Use cashier’s check, banker’s draft or business check to purchase
boat Amount of check is more than the purchase price Purchaser requests the overage be sent back to him, to his
international shipping agent, etc. High risk countries – Nigeria,
Russia, Israel,Ivory Coast,Australia
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Wire transfer version of Cashier’s check scam
Purchaser asks for wire transfer instructionsInstead of sending wire transfer, sends someone to
deposit a forged or stolen checkBy the time the check bounces, the purchaser has
taken the boat
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Disbursement of Funds to Fewer than all the parties
Boat titled by joint tenants (husband/wife or siblings)
Client requests that payment be made to only one name or to a representative
One family member may be taking the proceeds of the sale from the spouse / family member
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Shareholder or owner of a corporation requests payment in his own name
You must check all the corporate docs to verify the shareholders, and even then, they can be forged
Information on Sunbiz.org (Florida) is not reliable for legal purposes, Delaware info. is not not even onlineCorporation may have a lien on its assets, including cash in the bank and accounts receivable, the shareholder may be evading a security lien
Shareholder could be avoiding responsibility to business partners
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Limited Liability Companies – Members request payment to their individual names
Unless you review all the company’s legal documents, you cannot know whether you are paying all of the members of the company
Their percentage interests may have changedIf you pay the wrong persons, or in the wrong
percentages, you may be liable for the mistakeDocuments can be forged
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Foreign companies without bank accounts
in the U.S.
Because it may be difficult for foreign companies to open a bank account in the U.S., foreign owners may ask that you disburse to a third party
The only safe way is to disburse funds directly to the titleholder’s name with a escrow account check or wire transfer to the titleholder’s account
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What can you do to help the client in difficult cases?
The principal of the selling company can deliver written instructions for disbursement to a Florida attorney who represents the seller
Preferably, the attorney should be the registered agent of the company
Make sure you know the law firm you are working with, as disbursing to the law firm’s escrow account reduces but does not eliminate the broker’s liability
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Disbursement – escrow account check or wire transfer?
To receive funds for closing, the wire transfer is saferTo distribute funds to seller (and brokers), an escrow account check is saferIf you wire funds, first contact the receiving bank to
verify that the name on the account of the beneficiary is the same name as the titleholder of the boat, check all the contact information of the seller with the beneficiary bank
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When representing a purchaser
Keep the deposit in your escrow account until closingCheck the contact information (including email and
phone number) of the person claiming to be selling the boat, do they work with a reputable broker?
Obtain evidence of title and the HIN of the boat before releasing funds to a third party
See the boat! Be on the boat with your buyer at closing, and make sure that he takes possession
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PEGGY J. [email protected]
www.robertallenlaw.com(305) 372-3300
THE SMALL PRINT: THE STATEMENTS CONTAINED IN THIS PRESENTATION (1) DO NOT REPRESENT OUR OPINION OR RECOMMENDATION, (2) ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY, AND (3) ARE LIMITED AND DO NOT REPRESENT A COMPREHENSIVE OVERVIEW OF ALL LAWS THAT MAY APPLY TO YOUR SPECIFIC CIRCUMSTANCES. WE SUGGEST THAT YOU CONSULT YOUR ATTORNEY REGARDING YOUR PARTICULAR SITUATION.
© 2012 ROBERT ALLEN LAW