If it Seems too Good to be True . . .

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I opened my mail yesterday afternoon, and was stunned to have received a cashiers check in the amount of $2,990.00 from Collin Bank of Texas!  The check was enclosed in a letter from the Grants Processing Center of Financial Solutions, New York, NY.  The letter stated that I had won a grant in the amount of $35,000.00 total, which should not be considered a loan.  It was for me to use to "start a small business, pay tuition fees, make a down payment on a home, and do housing repairs or to pay medical expenses."  Wow!  Who couldn't use $35,000.00!  Jackpot!  Oh, wait, it said the $2,990.00 check is to help pay for the administrative, processing, and applicable fees.  Then a commission fee of 10% will be deducted from the total amount, and then I would receive $31,500.00.  
The cashiers check looked very genuine, and even had the newest security features.  However, a closer look at the check showed a single flaw - the bank logo was a bit pixelated in comparison to the crisp print of the rest of the check.  On further examination we also noted that there was no bank number under the check number. 



We re-examined the envelope, and noticed that 1) it did not bear a return address, and 2) it was mailed from Canada.  That would make no sense at all if it was truly a U.S. "Government Stimulus Grant", as it purported to be. A further indication that this was a scam were a couple of grammatical and spelling errors in the letter.  The U.S. government, we would hope, would not send out a letter that contained errors. In fact, if such a letter containing a check was real, it would almost certainly be sent by registered mail.  


Doing the math, if they are taking a 10% fee from $35,000, and are only providing $2,990, that would leave us paying $510 out of our own pocket.  That doesn't sound too bad, to receive $35,000, right?  Except that the $2,990 check is bogus, so if our bank actually cashed the check, we would end up having to pay that back when the check bounces. 


We've heard of scams of this nature, so I called the Texas Department of Banking, who confirmed there was such a thing as the Collin Bank in Texas.  Unfortunately, there was nothing they could do about verifying if this is a scam or legitimate.  My next call was directly to the Collin Bank, and they confirmed that this is, in fact, a scam of which they are aware and told me not to cash the check.  I wanted to be sure that this was reported to the authorities so that others in financial crisis who received a similar letter and check may not be harmed.  Collin Bank assured me that they have taken all of the steps necessary for the authorities to find the criminals who perpetrated this fraud.  It greatly angers and saddens us to think that there are people who profit from preying on other people, especially those who may already be in financial straits.


If you receive a check in the mail that you weren't expecting, please investigate it before you cash that check, and remember what your mom probably told you time after time, as mine did:  If it seems to good to be true, it probably is!


Following is the entire text of the letter (including its errors, which we believe indicates it was not written by someone with English as his first language), in case you're curious: 


Grants Processing Center
Financial Solutions
PO Box 212 New York, 
New York, 10021 


Customer Service Dept.
Tel: 1-888-324-1090, Ext. 104
Fax: 1-949-544-5209
Email: financiallaw@consultant.com


HOURS OF OPERATION
Monday to Friday :9:00 am to 4:00 pm EST.
Saturday 9:00 am to 4:00 pm EST.


Government Stimulus Grant Organization
Eligibility: 18years old leaving in USA
Awarded Grant ID NO: GGA-1003


Date: May 19, 2010


Dear, XXXX


CONGRATULATIONS.  On behalf of the Stimulus Grants Association, we are pleased to inform you that your grant in the amount of US$35,000.00 (Thirty Five Thousand, 00.Cents. Dollars) has been approved.


Your approved file was sent to our company by the Stimulus Grant Board of Commission. Your file was evaluated by our legal department and that leaves you the sole beneficiary of this grant. 


The enclosed check of US$2,990.00 issued to you is from one of our financial sponsors to assist you pay your administrative, process as well as applicable fees.  However, this check is "for deposit only".  As soon as these fees have been paid, Commission fee of 10% will be deducted from the awarded total amount to the sponsors; a certified check in the amount of US$31,500.00 will be delivered to you at your residence within 1 to 2 business days by Federal Express mail or UPS upon receiving your PAYMENT CONFIRMATION by fax number: 1-949-544-5209.


This Grant is not a loan and you are not expected to pay it back.  It can be used to start a small business, pay tuition fees, make a down payment on a home, and do housing repairs or to pay medical expenses.  Your claim number is GGA-1003.  We ask that you keep your Claim number confidentially secured until your claim has been properly processed and funds remitted to you as this is a part of our security protocol to avoid any DOUBLE CLAIMS.


Please call your Assigned processing Agent SUSAN HALL at 1-888-327-1970, ext 404 to further assist you with your claim.  "ALL APPROVED STIMULUS GRANT SHOULD BE CLAIMED WITHIN FIVE DAYS FROM THE DAY YOU RECEIVE YOUR NOTICE."  IF YOU HAVE ANY VERIFICATION, INQUIRY OR WERE NOT ABLE TO REACH YOUR ASSIGNED PROCESSING AGENT, PLEASE CALL THE SUPERVISOR, LARRY MITCHELL AT 1-914-920-6524 OR 1-888-327-1970, EXT 600.
Thank you and congratulations from all of us at the Stimulus Grant Board of Commissioners and Government


Sincerely,


Dean Douglas
Finance Director, PHD


FINANCIAL SPONSORS: Grants or Draws are sponsored by various corporate companies:  COLLIN BANK AND LIME ROCK RESOURCES.

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