But you
promised...
There will, however,
be the odd bad
penny, and the thing
is they are difficult to
spot in a handful of
change.
Recently, I went to see the Wolf of
Wall Street. If you haven’t seen it,
it’s an entertaining (though long) film
about a corrupt US stockbroker called
Jordan Belfort, based on his own story,
published when he was released from
prison. In essence, it’s a story about
greed and gullibility. Jordan Belfort
prospered for many years because
he and his colleagues sold to gullible
people the idea that they would become
rich very quickly by investing in dubious
enterprises that had little real value. They
were motivated to do so by their own
greed, which of course ultimately proved
to be t heir downfall. They promised much
and delivered little.
It made me reflect on the extent to which
the ordinary business we transact in
our lives relies upon trust, which in turn
depends on the people we are dealing
with behaving ethically and honouring
promises. How important is that and how
far can you take it for granted?
Well, as a Solicitor, I of course have
to say “Don’t rely on it”. In my career I
have come across many examples of
people that have put too much faith in
another person’s promises without really
testing them out or thinking about the
consequences if those promises aren’t
honoured.
An example of this would be a client
I dealt with many years ago who was
seeking some finance for a particular
project he wanted to launch and was
6
told about an investment company that
could be interested in backing him. He
met with a person describing himself
as an Agent of the investment company
in an Airport lounge. Yes that may start
to raise suspicion, but actually quite
a lot of business is done on the move
these days, so the lack of a plush office
decorated in pastel and bedecked
with artificial greenery isn’t of itself an
indication that extra vigilance is needed.
Anyway, in this particular case, the
Agent said that the investment company
would need to look into the viability of
my client’s company, and that would cost
£50,000 for the “Due Diligence”. At that
time, my client had no Solicitor acting
for him, but was reassured to learn that
the Agent could produce a Solicitor’s
reference, confirming that all was in
order so far as this Agent’s dealings
were concerned. The money was paid.
Needless to say, that £50,000 and some
more money after that disappeared, and
no investment ever took place, at which
point I became involved, to advise what
could now be done.
It was an interesting case. My client
was based in Canada, so it had an
International flavour. The “Agent”
inevitably disappeared after some
initial half hearted correspondence
so how would any recovery of money
be effective? There was some law
to unravel. For a start, in law, not all
promises are binding. If I promise to
come round to your house to wash your
car (and let me just say there is little