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Saskatchewan | I got an email on this from our local RBC branch warning that this is a potential fraud deal, not sure if it is the same company or not, but to me it sounds to good to be true and when things like this happen usually they are. The fact rbc would issue a statement on it scares me. I will paste below the letter I received in an email below.
Recently we were made aware of an offer for urea fertilizer (primarily to Hutterite colonies) in Southern AB. The offer comes from a company known as Total Lagoon Care LLC out of Indiana and consisted of a single faxed sheet indicating the following:
-Total Lagoon Care LLC selling 46-0-0 Urea from $470 to $500 per metric tonne
-Urea is imported, US Customs approved and will be delivered to a Freeport Rail Head near the buyer
-It is packaged in 50 kg (110 pound) bags
-All urea will be delivered once Total Lagoon Care has orders totalling 25,000 metric tonne and all orders are accompanied with a verifiable Letter of Credit
-The L/C must accompany the final order and instructions concerning the final order will be provided later
Upon further investigation through numerous RBC departments it was determined that:
-The urea is coming from Russia or the Ukraine and is generally of very poor quality
-The address on the offer sheet belongs to a law office in Muncie, Indiana, the phone and fax numbers are for a residence in Yorktown, Indiana and the cell number is registered in Lima, Ohio.
-At no time in the last three months could such a price have been obtained on the raw product and even if it had been purchased months ago the domestic price is now in the range of $1000 per metric tonne bulk so why offer urea at half the current market price?
We have very little information on Total Lagoon Care LLC and can't determine if they are legitimate or not but this is not a typical product, format, delivery method or payment proposal and as such we have decided to advise clients against entering into this offer given the number of production and financial risks it presents to the client and to RBC.
While this offer is specific to the Ag market it is conceivable that similar plays may develop targeting different sectors as well. As such we decided it would be prudent to inform all VP's of this offer in an attempt to head off future attempts.
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A cure for high fertilizer prices
