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AR15.COM
12/12/2010 2:12:40 PM EDT
Ok, here's the deal.  My brother in law works for his dad who owns an oil production company.  He recently put together a production plan and shopped it around to several investment websites and had a company pick up their production plan.

It has made it to the point that they have flown to Dallas for 3 days of meetings and presentations to the invest group that is interested.  Here's the kicker: the group is from Hong Kong.  They are wanting my brother in laws company to insure the whole operation with ?Lloyd's of London? to the tune of $60,000.  Does anybody know if this is SOP or if this could be a scam?

Thanks in advance for all the stupid answers, hopefully someone on here has some experience in this field.

jsflyer
12/12/2010 2:14:33 PM EDT
[#1]
Doesn't sound like fraud to me.



Lloyds of London is a big insurance company.
12/12/2010 2:17:00 PM EDT
[#2]
In my limited experience in these matters,I wouldn't think it was a scam.

They are probably just trying to protect their investment as much as possible-the old "return OF investment compared to return ON investment.


Someone will chime in with more experience I'm sure.
12/12/2010 2:18:52 PM EDT
[#3]



Quoted:


Doesn't sound like fraud to me.



Lloyds of London is a big insurance company.


This, but the amount of it seems odd and very low.



 
12/12/2010 2:32:41 PM EDT
[#4]
Quoted:
Doesn't sound like fraud to me.

Lloyds of London is a big insurance company.

True, but they do pay commissions.  Our CEO forced a company we acquired to buy insurance from the company he specified so that he would get a kick-back.z
12/12/2010 3:09:18 PM EDT
[#5]
The $60,000 was their share of the insurance, not the entire amount.

jsflyer
12/12/2010 3:13:10 PM EDT
[#6]
Quoted:

Quoted:
Doesn't sound like fraud to me.

Lloyds of London is a big insurance company.

This, but the amount of it seems odd and very low.
 


I cary almost ten times that coverage on my pickup truck.  Seriously.  
12/12/2010 3:24:08 PM EDT
[#7]



Quoted:


The $60,000 was their share of the insurance, not the entire amount.



jsflyer






This was whose share of the insurance?  The Hong Kong investors?


I'm utterly confused.  










 
12/12/2010 3:27:16 PM EDT
[#8]
Insuring against what risk?
12/12/2010 6:20:43 PM EDT
[#9]
The $60,000 was my brother in laws company's share of the insurance...

I think they are insuring everything...loss, theft, failure, etc....?