Beware of UCC ”Bill of Exchange” Scam

Beware of UCC ”Bill of Exchange” Scam

Jim Engel, vice president of PNC Dealer Finance Corp., a WANADA Kindred-Line Member, has alerted WANADA that a client dealer in Maryland recently sent him a stack of bogus documents the dealership received related to an ”International Bill of Exchange” and a ”Notice of Conditional Acceptance.” Engel explains this is a form of Uniform Commercial Code (UCC) scam, in which the person trying to buy something from the dealer has filed a security interest against their own name (in capital letters) or the name of a business entity, like filing a trademark. Often, the individual is led to unscrupulous websites touting ”conspiracy theories” relative to accounts at the U.S. Treasury in their name. All they have to do to tap this money is to present these papers to a dealer. ”The paperwork looks very official and has all kinds of serious-looking language, including UCC cites, references to the U.S. Treasury and dire warnings about what will happen if you (the dealer)

dishonor the negotiable instrument,” said Engel. ”The con artists tried to buy vehicles using this phony paperwork, but fortunately the dealer checked with us prior to trying to process anything and delivering the cars,” said Engel. ”I’d seen these in the past and knew immediately what it was.”

Engel warns dealers not to accept any documents for payment for vehicles that include International Bill of Exchange with references to the U.S. Treasury and copies of UCC filings. ”These things tend to pop up when the economy is soft. Unfortunately, the people trying to buy stuff with these papers have often been duped into believing that they’ve found some silver bullet to their problems,” he adds. For more information, contact John O’Donnell at WANADA, (202) 237-7200.