I am a small business owner and have been looking for angel investors. I received a letter from "SFG Group" from Woodland Hills, CA. In the letter was a commitment letter, asking me to sign in order for them to begin the process of soliciting investors in the amount of $210,000.
I am in my last year in law school so I know about doing "due diligence"--they are not registered with any state's secretary of state, the address they gave points to a restaurant, who sends a letter of commitment in a mailing, they have no website, they don't indicate if what type of organization they are, they put a week's time limit on signing the form, etc.
It seems silly to me for them to send this letter anyway because of the terms---it's not legally binding and I can breach the contract without consequence. Just wanted confirmation that I was on the right track.
2006-10-18 07:24:26 · 7 answers · asked by darshunk 2 in Business & Finance ➔ Other - Business & Finance
I agree with the shredder for that letter.
Aloha
2006-10-18 07:32:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In a word, "yes".
There are so many red flags in your question it's hard to find any other color.
But the biggest, in my mind, is the time limit. They are trying to hurry you into making a decision. Putting that kind of pressure on you to "decide now" is a common tactic for scam artists.
I'd actually forward the letter to your local DA with a letter of your own voicing your concerns. If they *are* a fraud - as I suspect - they need to be stopped.
2006-10-18 07:35:05 · answer #2 · answered by mriehle 3 · 0⤊ 0⤋
Definately sounds like fraud to me. You should report them immediately and keep a copy of the letter for your records and send a copy to the Secretary of State as well as your local police department. This may be a form of one of those "I am Zhadirmank from Zimbabwe and I want to put $100,000,000,000 in your account" letters.
2006-10-18 07:34:11 · answer #3 · answered by Wookie on Water 4 · 1⤊ 0⤋
Trust your instincts... yeah, that sounds plenty fraudulent. Why would any legitiment 'angel funding' come with never talking with you, no analysis of your business and not requiring to see your business plan.
Put the letter in the shredder. If they are 'real' (doubtful) they can contact you in a 'normal' fashion.
2006-10-18 07:27:48 · answer #4 · answered by words_smith_4u 6 · 1⤊ 0⤋
Doesn't sound good to me.
I would send it to the local Consumer Fraud Office, usually a part of the District Attorney's duties.
2006-10-18 07:33:27 · answer #5 · answered by jboatright57 5 · 1⤊ 0⤋
something that is 2 good 2 be true is never true !!
2006-10-18 07:31:46 · answer #6 · answered by Anonymous · 0⤊ 1⤋
its a scam...dont
2006-10-18 07:32:25 · answer #7 · answered by USMCstingray 7 · 0⤊ 0⤋