Entrepreneur Alleges Overseas Investor Scammed Him Out of Thousands of Dollars

A West Des Moines businessman told authorities last week that he’s out thousands of dollars as a result of a phony investment deal brokered through the social media site LinkedIn.

The victim, the chief operating officer of a new startup company, told police last week that he was seeking $1.2 million in startup capital for a company offering skin-care products.

A Kuwait investor reportedly answered his query in January and put him in touch with an accountant in Hong Kong and negotiations began. According to the report on file at West Des Moines Police Department, one of the criteria of the accountant was the establishment of a shelter company in Hong Kong. The West Des Moines man agreed, and per the arrangement, wired $7,000 to the accountant for fees.

Negotiations continued until late March, when the victim received a bank draft for $1.25 million along with a request that he send the accountant additional funds.

The West Des Moines man became suspicious, according to the report, and checked with the bank and learned the draft was fraudulent. Further attempts to reach his initial contact were fruitless, according to the report.

The victim provided police with the terms and conditions of the investment, a copy of his original contact’s passport, a copy of the bank draft, and copies of letters he sent to U.S. Sens. Tom Harkin and Chuck Grassley.

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