Fraud by NVOC

A ship agent in the Middle East released 31 containers against receipt of NVOC bills of lading after receiving a telex from the loadport agent informing him that freight had been collected and the Line's bills of lading were in the loadport agent's hands. Cargo is released in this way between agents every day. However, in this case the telex was a forgery which originated from the NVOC. The loadport agent was still holding the Line's Òfreight prepaidÓ bills of lading and was waiting for the forwarder to pay the freight. Freight of US$35,000 was unpaid, the NVOC disappeared, and the Line collected the unpaid freight from the discharge port agent.