I am the President and CEO of a company that manufactures, distributes and retails computer and video gaming accessories worldwide.
Two years ago we were preparing to launch a new set of wireless speakers and, since none of the manufacturers we currently worked with made a similar product, we decided to try out a Chinese company that we found in an online database of contract manufacturers. We were able to check all of their references and product designs on the site.
We put down a deposit. And they eventually sent a sample. Thinking back, the delays definitely caused concern. But they assured us that the units were completed and the shipment had been booked. So we paid the balance, bringing the total to $35,000.
The shipment never arrived. When we checked with our booking agent overseas, they said the cargo was never delivered. We later discovered that the company never even built our units; they contracted out to produce our sample.
Unfortunately, we really have no recourse against a company in China that has our wired funds. But we have learned a lot from this experience. Now we ask for more pictures and samples during the manufacturing process. And we only work with companies that we have experience with or that our representatives in Asia can verify.
Diann Cattani's embezzlement of a small business started off as an innocent mistake and then quickly got out of control.
