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Posted By: peter chao

John,

Actually, I had a client that did that to all their creditors. My client was a distributor of computers and computer related equipment and making lots of bucks. They paid me a monthly retainer of $2,000 every month in a timely manner. As a matter of fact they would pay me faster than any of my other clients.

One time I happened to run across their banking records and I realized that they had a line of credit that allowed them to purchase over 10 million from various manufacturers.

The interesting thing was I also ran across their accounting records and I found out that even though it appeared that they were doing well, in reality they were just breaking even. Well one day they simply purchased over 10 million worth of computers and computer-related products from various manufactuer's and simply packed their bags and left their warehouse headquarters. Of course, they didn't pay their retainer that month and I couldn't locate them.

The rumor was they had taken all the computers and computer-related equipment and took off for Latin America. At the time there was a thriving grey market in the U.S. and in Japan for computer products. The grey market is like the black market where employees and others stole computer equipment and chips from their employers and sold the equipment and chips at a discount to buyers.

The rumor went further and speculated that my clients had gotten cheap warehouse space in Latin America and was selling the computers and the equipment on the grey market at a discount.

Although I was contacted by the FBI about the situation, it was obvious I didn't know anything. It's been years now, and there has been no follow-up by the FBI.

Peter