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Fraud uncovered during the midst of a collection matter
Our collection attorneys handled a matter for a major plumbing distributor in New England. The debtor provided freight service shipping for the client and was to receive a percentage commission for handling the shipping logistics. The debtor was fired by our client after providing sub standard service for a period of time. At the time our client was owed over $10,000. We were hired to file suit. The debtor filed what we considered to be a bogus counterclaim indicating that the client had not paid him all commissions due. The counterclaim was seeking $80,000.
After exhaustive research through our discovery efforts, our office uncovered a pattern of what appeared to be fraudulent billings by the debtor in which he was overstating the freight charges and therefore in fact we believe that he had overbilled our client for commissions that were not due.
Result: As a result of our investigation, we located the former spouse of the debtor who provided us with sufficient information that resulted in the counterclaim being dismissed and our client being paid more than what we originally demanded.