Several times in my law practice I’ve seen the aftermath of a same pattern:
Around the holiday season, a woman of young to moderate age meets a charming business minded man of similar age. He has a growing business with plans for expansion. He soon loves and trusts her so much that he invites her to join the business as an equal partner. She quickly gains responsibility for many aspects of the business operation. She begins to sign contracts on behalf the business. Including commercial loan agreements (such as MSA or ARF agreements) that have personal guarantees. She loves and trusts him so much and the business is doing so well that she signs on the guarantee without concerns.
Then comes the second act.
Money starts to drain out of the business. Tough times. Hard to make payroll. Hard to pay the loans. She draws on personal credit to weather the storm. Meanwhile, the man favors her with gifts and pricey experiences to take her mind off the troubled business.
Eventually the third act, where the woman wakes up to the scam. Those trips and gifts and luxurious meals the man paid for with business money. That money came from the loan that she guaranteed, or from her personal credit, or from her retirement savings. More of her money and her guaranteed loan went to other expenses. Sometimes child support for hidden kids. Sometimes gambling sprees. Sometimes a second business where she isn’t on the books.
Like I said, I’ve seen this several times. It’s a sophisticated long play on romance fraud.
Women, watch out for gigolos. Yeah, I’ll name them for what they are.
