Next time you think you've found an investment that is fool proof, think again. You can never do enough research before investing money you think you can't lose.
Fraud victim Wayne King said, "If the guy is good, you have a good investment - if he's bad - you have a problem..."
Unfortunately for Wayne King he had a big problem. the real estate developer decided to take out a loan for $400-thousand dollars to invest in a start-up powder coating business.
Tammy Mayle, US Postal Inspector said, "Mr. King thought it sounded like a great opportunity."
The con men told king the bank was also lending them a million dollars to get the business off the ground.
"So, Mr. King thought if the bank and the SBA is backing the loan I should be able to give $400,000 dollars and be fine," Mayle said.
But, nothing was fine. Turns out the con men lied on their bank application.
"I did due diligence on myself, but the bank authorizing this didn't do due diligence on this guy," King said.
While King was being strung along by excuses and delays, postal inspectors found out the business was never operational.
"There was never one job produced out of the business. Both suspects used the money to live off of - to pay personal debt - to pay all of their expenses and within nine month the money was gone and filed for bankruptcy," said Mayle.
"You should know the people you are dealing with... find out what their personal finances are...," warns King.
Inspectors say King's life has been turned upside down.
Mayle explained, "He was devastated, this was his livelihood, his retirement, he is 73 years old and he still works 8 to 10 hours a day to repay this loan."
The suspects were convicted on bank fraud - and - ordered to pay restitution.