In early November the Eastern Building Material Dealers Association (EBMDA) announced several of its members had been victims of scams concocted by multiple Canadian firms. The association contacted the FBI and an investigation was launched, and recently the EBMDA announced the FBI is "taking the investigation to the next level."
In an effort to collect background on the fraudulent companies, the FBI is requesting victims fill out this questionnaire. Additionally, victims can contact (877) 236-894 or [email protected] to report fraudulent activity. Even if victims have already submitted background information to the EBMDA, the FBI is requesting they re-submit through their website, as well. All information submitted to the FBI is confidential.
Targets of the scam include U.S. building material dealers, including wood flooring dealers. The allegedly fraudulent companies concocting the scams include Canstruct, Inc., AYA Distributors, Xpress Auto Parts, Point Tech Performer Inc. and Emptech. Typically, the companies are located in or around Montreal.
According to the FBI, "The scam begins when a Canadian business … requests a line of credit with a U.S. business. The Canadian business will fax or e-mail references, credit documents, and/or tax documents to prove authenticity. The Canadian business will then place an order for materials on the line of credit and arrange for shipping by a third party. The materials are hauled to Canada, and payment is never made."
