Debt Owed May Have Turned into Fraud - What Do You Think I Should Do?

So, I run a small business on the side, I do have an ABN, but by no means is this my primary job but it gives me extra income on the side. I usually only accept cash in hand jobs but someone approached me last year to do some work, they said they did not have all the cash right now and if I am willing to do a payment plan. I was uneasy about it but I decided to go ahead with it. I took all his details, copies of his drivers license, contact details, I got him to sign paperwork that he accepted my terms etc. So, let's call him Person X.

Around a month or two after the work was completed, I got contacted by someone saying that they were the brother of Person X. He said that Person X had been involved in an accident and had passed away. Being a stand up guy, the brother said he was willing to take on the debt and pay it off. A few payments came through but much of it I had to keep chasing up, lots of back and forth contact to keep any money flowing back to me.

Up to now around half the debt has now been cleared. Earlier this month I received an email from the brother saying that he will pay off the remainder of the debt in one last lump sum. I replied, great, let me know once it goes through. But nothing came, and my last two emails have now been ignored. My last contact was 2 weeks ago.

At this stage I decided to do some sleuthing. I tracked down Person X on Facebook. While most of his page is locked down and appears to be static, I did manage to glean little bits of information from people who liked parts of his page. Through those likes and connections, I managed to put together an immediate family tree of his mother and siblings. There are some public posts on their Facebook pages, while there are no photos or posts about or from Person X, in an interesting twist, there are likes from our deceased Person X on family photos and posts that have occurred after his unfortunate demise. Also more interestingly, the name of "the brother" does not match any of the names I have been able to identify in his family. As far as I can tell, this brother who has been talking to me is likely fake.

The amount owing is not large enough to be pursued through legal channels, but its large enough that I would like my money eventually. Anyway, I have reason to suspect he is alive and well and has been talking to me through a fake alias. A simple debt (a civil matter) could possibly have turned into fraud (a criminal matter). In which case, it might be worth it for me to report this to the police.

Question to everyone, should I contact the police? Should I try and get some proof that he is indeed still alive? Should I try contact his family members, though I have little else other than Facebook pages. What would you do?

TLDR: Guy owes me money, I think he lied to me about his death and has been communicating to me through a fake alias. Should I go to the police?

Comments

  • +1

    Contact the Executor.

  • -6

    Bikies?

  • +1

    What is the angle you suspect he is playing?

  • +8

    If I were you, I'd do something like this: Organise all your documents and correspondence, including the "brother" telling you the client's died, and screenshots of Facebook likes if need be. Put it all in a nice bundle and send a polite email saying something like: "I've no idea what's going on but apparently [Person X] isn't dead and still owes me $[amount]. Pay by [date] or I'm going to have to report this to the police."

    • +1

      or I'm going to have to report this to the police

      I think "or I'm going to have to take further action" would be sufficient.

      I suppose there is a minute chance that the deceased brother's facebook account has been used by someone else (as morbid as that sounds), so maybe don't threaten police until they've got their first sign that you're serious

      • -1

        I'd normally agree, but even if the customer is actually deceased, it's not as though the brother has been paying consistently to date. To me, the fact the brother hasn't paid, and has now basically refused to reply to OP means he can't afford to look weak anymore. Otherwise they'll figure it as a bluff (because very honestly I don't think the police can do anything here).

      • -1

        I agree, as weird as it sounds, its possible someone may have used this person FB account so I dont have concrete proof that this person is still alive.

        Either way, if he had simply not paid me, it would be a purely civil matter. Police would not care at all. I probably would have just flicked it to some debt collectors. But "the brother" has paid me some of the money owed so I played along hoping I would be paid back in time.

        But given he has come up with this elaborate story and that I cant find any record of this brother even existing, its well and truly entered the territory of fraud. Something the police might actually be willing to take a look at.

        • -1

          This is pretty simple, you did work at his adress im assuming. Just turn up and start ripping it out, they will contact him pretty fast if hes still alive šŸ˜‚

        • +4

          When somone dies, his estate pays off the debt. If there is no money in the estate then the debt is "dead", relatives arent required to assume the debt.

          There is something fishy here as why would the brother pay anything to you, as they arent required to. They should just give you the executors name and that's all

      • Dont threaten police get your money back. then go to police. cant let possible fraud go unhinged

    • +13

      Donā€™t email, post it as registered post.

      That way they HAVE to sign for it.

      If this ā€œperson Xā€ exists and signs for something addressed to them, you can basically catch them in the act this way. Then contact auspost to get a copy of who signed.

      • Brilliant!

      • Then contact auspost to get a copy of who signed.

        Registered Post service has a Person-to-Person option, which means the letter will only be delivered to the addressee (with exceptions; not being alive is presumably one of them).

    • +1

      Cops donā€™t deal with this shit

  • Just contact debt collectors and inform them of the nonsense pulled

  • +5

    How much?

  • Did you ever meet person X in person ?

    • Yes I did meet him in person

  • How much $ wise are you talking about? Rough # is better than nothing when you're sounding others out for info/suggestions.

    • Less than $500. That is why pursuing it through solicitors will likely make it not worth the effort.

      • -1

        Go pull your work out.

      • +2

        Why waste your time, just smear cow shit over his door or something

      • Forget about it. It's $500.

        • +2

          $500 isn't a tiny amount, its the principle of the matter also.

        • For $500, walk away. This will turn out to be a waste of time.

          If you're one of those people who won't, issue a statement of liquidated claim through small claims court.

        • -1

          It's not like the OP paid $500 for a product and never received it. This would be a net loss of $500

          In this case the OP did some work and was not fully paid for it. Did the OP spend any money (i.e. buy any items) in order to complete the job? Or was it only his 'time' that was used.

          How much was the total cost for this job? The customer has paid some of the amount back - what percentage of the total amount does this $500 represent?

          I'm assuming that the OP included profit on the invoice - how much of this profit was lost because the customer did not pay the $500 balance.

          IMO, the OP did not realise a net loss of $500.

          If the OP wants to waste time chasing the customer (time he could be using to bill other customers for work) then the loss will ever increase if he is not successful.

          Part of running a business means that some customers will not pay. Factor that into your charges.

          Since this was a cash job, were you declaring this income to the ATO? Did you provide an invoice to the customer?

      • +3

        I usually only accept cash in hand jobs but someone - I would be more concerned about the ATO contacting you soon?

        • Lol , why would ATO contact him ?

      • Take it to small claims/Xcat. Costs you hardly anything and will easily be decided in your favour. Then once you have your money report it all to the police.

  • +1

    Just write to Person X with a letter of demand. Give them a date to pay. Once they fail to pay, take action in XCat. Provide the fake death messages as evidence of intent to not pay.

    • +1

      XCat always sides with Person X as their name is literally in the letterhead.

  • +1

    I would have nicely asked for the name of the executor of his estate, confirmed a few details like the death certificate, and worked out payment with them. What happened sounds really dodgy.

    Even if it was only over $500, its still your money.

  • +33

    I usually only accept cash in hand jobs

    What?!

    • +2

      hahahaha I'm hyperventilating, this comment is amazing

      Cash-in-hand Jobs.

    • +4

      Do you not also accept cash in the form of hand jobs?

  • +3

    Did you look for a death notice in the online newspapers?

  • +1

    Total b/s

    If the person died sue the estate, dying does not erase a debt

  • +1

    Is it worth the risk of an audit from the ATO if they decide to get nasty?

    • Why audit ?

    • He has an ABN. Sounds like he is paying tax, he just doesn't normally accept jobs that will be on "payment plans".

  • Does the family and X live in the same city as you?
    Have you considered a door knock to see who answers?

  • My initial reaction is why does he set to gain by pretending he's dead but that his "brother" will assume his debt. Understanding this would probably help to work out the best course of action.

    In any event, I agree with everyone else that your debt is ultimately with X (or his executor if he really is dead) rather than his brother.

  • +1

    If he was dead and the family was well aware of the debt, the brother would not have taken on the debt, he would have had the estate pay it out just like every other debt the apparently dead fella would have carried.

    You have his details, send a letter of demand via registered post. The dead fella will have to sign for it. No need to mention the death in any correspondence, simply follow the standard debt collection pathway, if he really is dead, they will provide the required info, if not, you have initiated collection, and have evidence of his lies.

    Keep all correspondence in case the letter of demand fails and you are forced to take him to xcat, the "I'm dead" correspondence will aid in proving to xcat that they were planning on ignoring the debt.

  • So I'm assuming you have the mobile phone number of "Person X"?
    Get a mate to call "Person X" from their phone, as "Person X" will have blocked your number.
    I'm guessing "Person X" will answer, or just say hi, in which case your mate can say "is that Person X" and see what they say.

  • +2

    Hi,this comment may be useful to many people.There is a website called ""RYERSON INDEX""as long as you have the first name and last name you can research that person's name and and will show up information of their death,

    • Just searched for 3 of my family members who definitely had notices in the paper.

      No Results.

  • You dont have any evidence of Person X's death.
    You dont have any evidence of who the brother really is.
    So just pursue the debt as if Person X is still alive.
    You may need to make a claim through the courts.

  • just go to the police. you have all of person X's details. they will sort it out for you.

  • Mystery work on the side…..someone wants work done but canā€™t pay but you did it anyway……then Mr X brother came wanting taking on the debts then disappears………

    Are you writing a book?

  • Local court small claims tribunal, Cost just over $ 100.- which gets added on to invoice, sending the Sheriff for enforcement cost another $ 80.- (multiple times if nobody is at home). I believe you need an invoice to lodge a claim, in a few months you'll get paid or the Sheriff auctions off some of their belongings to pay you. Make sure Person X is alive before going down that road.

  • +1

    Any update on this?

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