Gardai have issued a warning on a Nigerian fraud operation which has netted substantial amounts from Irish businesses over the past five years. They estimate that so far this year the schemes may have cost gullible Irish investors as much as £500,000.
According to the Det Insp Terry McGinn, of the Garda Bureau of Fraud Investigation, they have received reports of some 20 bank transactions this year and they believe over £500,000 has transferred by Irish investors to fraudulent Nigerian companies.
However, gardai have received only one complaint from a defrauded investor, prompting them to believe the funds being transferred are monies that the Irish investors have not declared to the Revenue Commissioners. It is understood one west Cork shop owner paid over £127,000 and was in the process of transferring another £50,000 this year when gardai intervened and warned him that he would lose the money if he transferred it.
Last month, another investor transferred £100,000 to another of the fraudulent Nigerian companies. It is believed the money was collected from a number of investors in counties Cork and Kerry, which have been targeted in recent months.
An elderly Englishman living in Co Cork is acting as an intermediary for the bogus Nigerian firms. Gardai have already questioned him but the man genuinely believes the investments are legitimate.
Gardai have succeeded in recovering $50,000 for one Irish investor after they traced a bank account number in Washington and requested the American Secret Service to freeze the account just before the money was to be wired to Lagos.
The advanced fee fraud - as reported recently in The Irish Times - involves fake Nigerian companies writing to Irish investors promising a 30-60 per cent return on their investment, with the fraudsters often purporting to be princes, generals or Nigerian government officials.
They present the investment as a unique business opportunity and say they have received the Irish investor's name from a reputable third party in Lagos who does business with Ireland, while they stress the need to keep the deal confidential.
They send various documents to the Irish investor to establish their credibility and build up their trust but then just as the deal is about to be completed, they say an emergency has arisen and they need an advance fee to meet some government fee or tax.
They demand an advance fee payment of several thousands of pounds to release capital tied up in bogus projects and very often the fraudsters demand a second payment to finally sort out the problem, and gullible Irish investors pay out again.
According to Det Insp McGinn, the investor, once hooked, keeps providing money in the hope it will yield a return. "It's like gambling - you get in so deep, you keep putting in money to get something out."
Some of the projects involve investment in fake Nigerian oil companies with large supplies of crude oil, while others are companies selling spare computer parts or property in Florida bought by Nigerian army officers.
According to Det Insp McGinn, any letters offering huge investment returns from Nigerian companies should be sent to the Garda Bureau of Fraud Investigation in confidence immediately.
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