Copyright 2002, Roadracing World Publishing, Inc.

By David Swarts

KWS Motorsports’ Kevin Hunt reports that he and other high performance race shop operators have been defrauded by customers using counterfeit checks and money orders, and Hunt wants to warn other business owners.

According to Hunt, con artists are ordering big-ticket, high-performance motorcycle parts from several shops and paying for the deliveries with what appear to be counterfeit checks and money orders. Hunt was taken for a $5500 big-block engine and says that he believes at least three other businesses he deals with have been hit by criminals using the same method of operation. In fact, Hunt says he and one other business were contacted through the same e-mail address.

“Obviously, they know how the system works and are using it to take advantage of us,” said Hunt.

Hunt says the criminals pose as typical customers, almost always order parts for Suzuki Hayabusas and want the parts shipped UPS, COD (collect on delivery) overnight to be delivered by 10:30 a.m. to addresses on the east coast, which usually turn out to be motels or large apartment complexes. This way the criminals only have a small window of time to wait for the UPS delivery truck to arrive. The criminals then meet the driver in common areas, so as not to be traced to any specific residence or room; pay for the parts with the counterfeit check or money order, which include legitimate financial institution names but numbers and coding that do not make sense to those institutions; and receive the delivery of parts. UPS accepts the checks and money orders, but, according to Hunt, UPS’s delivery policy specifically eliminates UPS’s liability to the businesses/shippers.

“UPS has a manual that’s about half-an-inch-thick,” said Hunt. “I’ve had a lawyer go over it, and UPS does not have any liability.”

A call seeking clarification on UPS’s policy concerning method of payment on COD deliveries, delivery policies and shippers’ liabilities had not been returned by UPS’s media relations department at post time.

“I just want to get the word out, as a courtesy, so no one else has to take a $5500 hit,” said Hunt.

Hunt recommends businesses ask overnight, COD customers for references of other businesses they have dealt with and checking the references, doing “reverse look-ups” to verify customers’ shipping addresses and phone numbers with AT&T’s directory website www.anywho.com or by simply asking the customers to pre-pay and waiting for the payment to cash or clear before any parts are shipped.

The case is currently being investigated by the Charleston, South Carolina Police Department as felony fraud, but Hunt is trying to get the case investigated by the Federal Bureau of Investigation (FBI) based on the facts that the crime occurred across state lines and that the Internet was used in the commission of the crime.