How I Saved $2,000,000: The Story of a Nearly Perfect Fraud

A developer approached me about investing $2 million in a development project in Bali. On the surface, everything looked perfect. The opportunity seemed legitimate, with all the professional trimmings.

The Challenge

The client was a developer looking for land for a new luxury villa project in Bali. They were approached by 'sellers' – foreigners offering the land under long-term lease. Everything appeared incredibly professional:

• Meetings with the sellers' notaries and lawyers
• Elaborate bureaucracy
• Refined communication throughout the process

The Red Flag

During our initial review, I noticed an unusual condition: the sellers refused to negotiate without a $100,000-200,000 deposit, which raised a red flag. They used high-pressure tactics, stating 'Prove your serious intentions' and warning 'Other buyers are coming tomorrow'.

The Action

Instead of proceeding with the deposit, I conducted a deep legal investigation, working with my network of local lawyers, notaries, and legal experts to verify potential risks and pitfalls.

The Discovery

Our investigation uncovered information not available publicly: the land was under bank arrest and could not be legally sold! The sellers had no right to offer this land, despite creating a convincing, yet fraudulent, facade and maintaining professional communication throughout all interactions.

The Outcome

By uncovering this fraud with minimal necessary documents provided before any money was transferred, I saved my client from losing $2 million. Even the most convincing scammers couldn't withstand the thorough legal scrutiny of my team of experts. Subsequently, we found a legitimate property that met their investment criteria, and they are now building a successful project on legally sound land.

Lessons Learned

This case illustrates why thorough legal due diligence is essential before making any deposits or payments in overseas real estate transactions.

The moral of the story: Before handing over a deposit, get all possible information from experts. Acting on emotion or under 'scarcity' pressure is a direct path to losing money. Logic, not hysteria, should guide your investment decisions.